All Pakistan Textile Mills Association (Aptma) Sindh-Balochistan Region Chairman Zahid Mazhar has urged Prime Minister Imran Khan to reduce gas tariff for the five major export-oriented sectors in line with a sharp reduction in international crude oil prices to help the economy and exports recover from the negative impact of Covid-19.
In a statement, Mazhar said in order to offset the devastating impact of the virus on the economy, industry and exports, the rate of natural gas for industries, especially the export-oriented sectors, including their gas-based power generation plants, should be reduced by at least 35-40% as the cost of energy was a major component in the total cost of production.
“A drastic fall in international crude oil prices to around $40 a barrel from the previous level of $65 also justifies the reduction in gas prices,” Mazhar added. He stressed that Pakistan needed to capitalise on the post-Covid-19 opportunities by supporting and enhancing textile exports.
“Only the textile sector can help to get out of the present crisis and bring massive foreign exchange along with providing employment opportunities to match the targets set by the PM.” Pakistan’s textile sector contributes 8.5% to the gross domestic product (GDP), employs 40% of the national labour force and contributes almost 60% to total exports.
“Already in the international export arena, many countries (especially competitors of Pakistan) are going out of the way to grab lost markets and explore new markets,” he added.
