Traders and industrialists in Faisalabad have lambasted the government for raising gas and electricity tariffs, saying it is suppressing exports and creating a favorable environment for importers.
At a joint press conference on Tuesday, they urged the government to continue its policies on special electricity and gas prices to support the industry.
They said the government should provide equal facilities to the textile sector to increase exports.
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Atif Munir Sheikh, chairman of the Faisalabad Chamber of Commerce and Industry (FCCI), said the industry was performing much better under Imran Khan’s previous government due to fixed tariffs for gas and electricity.
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کس کا شکریہ ادا کریں؟ pic.twitter.com/o2U6vJJAXz— Imran Khan (@ImranRiazKhan) May 31, 2022
He also hailed the “smart lockdown” strategy used by the former prime minister to fight the Covid-19 pandemic, which contained poverty and gave Pakistani industry an edge over countries in the region like Pakistan. India, China and Vietnam, which remained closed amid lockdowns.
Meanwhile, Pakistan Hosiery Manufacturers and Exporters Association (Northern Zone) Mian Kashif Zia and Yarn Association Chairman Jawad Asghar lamented that raw material prices had nearly doubled with the rising dollar.
They added that the government should announce a relief package for the textile industry taking all stakeholders on board.
The textile industry has requested the restoration of zero-rate status, the import of cotton duty-free and the extension of the long-term financing facility (LTFF) for the next fiscal year 2022-23 for the sustainable growth of l ‘industry.
According to The News, the All Pakistan Textile Mills Association (APMTA) has called for a reduction in corporate tax from 29% to 25% and the removal of the turnover tax of 1.5% and proposed a current zero duty structure on dyes and chemicals.
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They also urged the government to immediately issue a duty drawback notification on local taxes and levies.
The country’s exports have risen from $18 billion to $32 billion over the past three and a half years, traders and industrialists said.
They said that if the current government raises electricity and gas prices, textile exports, a large part of overall exports, would start to decline and lead to unemployment in the country.
