Finance Minister Likely to Consider Subsidized Energy Rates for Textile Exporters

Federal Minister for Finance Ishaq Dar could decide on subsidizing energy rates for textile exporters during his forthcoming meeting with Pakistan Textile Exporters Association (PTEA).

Dawn has reported that the Finance Minister could consider a hefty package of subsidies on energy for the textile sector to compete with the other regional countries. While quoting Patron-in-Chief PTEA Khurram Mukhtar, it stated that Dar has called PTEA for a meeting on Thursday to discuss energy tariffs.

Khurram Mukhtar mentioned that textile exporters want some practical mechanism for making the textile sector more competitive in the global market.

He also highlighted that a regionally competitive tariff was given to the textile sector back in December 2015. PTEA pleaded the case for the entire textile value chain and accordingly Ishaq Dar recommended a $1.20 per mmBtu subsidy which the government later extended to all export sectors, he added.

Khurram Mukhtar maintained that it took the textile sector four years to gain back its share in the global market. He also stated that Pakistan’s textile exporters have got a huge opportunity to increase the country’s exports to $35 billion in the next five years subject to remaining competitive.