Pakistan apparel textile sector warns against discontinuation of special power tariffs

Pakistan’s apparel textile sector has warned the federal government against discontinuing the special power tariff to five export-oriented sectors saying, this would prove disastrous for the economy. It also urged the government to inform the IMF that the concessional facilities are not a ‘subsidy. It should be communicated to the IMF that the special energy tariffs and other facility to export industry have been wrongly interpreted as ‘subsidy’, says Muhammad Jawed Bilwani, Chairman, Pakistan Apparel Forum

The government needs to understand that the special energy tariffs provided to the five export sectors are on par with those given to industries in the regional countries to ensure the country’s products could compete globally. Similarly, the DLTL (the Duty Drawback on Local Taxes and Levies) is a policy measure to spare export goods from taxes, he adds. The government should continue the concessional tariff for export industries beyond June 30, 2022 in ‘the national interest, Bilwani says. He urges the government to act wisely and do not any decision that would negatively impact exports.

He believes, continuation of concessional power tariff slab will help local industries perform better.