ISLAMABAD: The All Pakistan Textile Mills Association (APTMA) has sought discount on export orders of yarn and cloth from the State Bank of Pakistan, end to disparity in prices and availability of gas for the Punjab and Sindh industry.
The Association sent its budgetary proposals to the State Bank of Pakistan and secretary Petroleum Division on May 20 after an in-depth meeting with the Finance Minister Senator Ishaq Dar on May 18.
SAPM on Finance Tariq Bajwa, SAPM on Revenue Tariq Pasha, Punjab Minister for Energy Syed M. Tanveer, secretary finance, secretary power, secretary petroleum, and chairman FBR attended the meeting.
A delegation of APTMA, headed by its patron-in-chief Dr. Gohar Ejaz, also participated in the meeting.
In light of the decisions, the APTMA has sent separate letters to State Bank of Pakistan and secretary petroleum asking for discount on export orders of cloth and yarn, ending the disparity in prices and availability of gas for the industry between Punjab and Sindh.
In the letter, Dr. Gohar highlights that at present all the textile export orders are discounted except yarn and cloth.
It was agreed that such an export discounting mechanism by the SBP that is already in place for other textile products should also be extended to yarn and cloth. It was mutually agreed that the SBP will include yarn and cloth export orders.
“Expeditious implementation of these measures will substantially alleviate economic setbacks and ensure a prosperous future for the industry.”
About the disparity in prices and availability of gas for the industry, Dr. Gohar Ejaz emphasized the urgent need to address the disparity in gas prices, as it significantly hampers Punjab’s industrial competitiveness.
Promptly rectifying this situation is crucial to avoid shutdowns, layoffs, and a decline in textile exports.
Furthermore, Dr Gohar stressed the importance of implementing the already enacted Weighted Average Cost of Gas (WACOG) policy.
During the meeting held on May 18, secretary petroleum committed to provision of RLNG at a highly favorable rate of $9/MMBtu for May and June. Furthermore, the secretary petroleum received explicit instructions to promptly engage with the APTMA to restore the discontinued implementation of the Regional Competitive Energy Tariff (RCET) until the conclusion of June 2023.