About 100 closed textile mills to open as Government allows subsidy

About 100 closed mills are expected to reopen  in Punjab due to the promised Rs.44 billion subsidy for exporters mentioned by Minister for Finance, Revenue and Economic Affairs, said Asad Umar during supplementary budget speech.

The subsidy itself will be derived from a massive regulatory hike in gas prices which has raised the price by 40% from Rs.600 per million British thermal unit (mmBtu) to Rs.780 mmBtu for commercial consumers. The plan to create a new category for those industrial consumers who are registered manufacturers or exporters of one of five zero-rated sectors is to charge them the unchanged rate of Rs.600 per unit.

Although the Economic Coordination Committee of the cabinet has been taking steps to reinvigorate the Rupee, a global surge in oil prices is posing significant challenges to a country industrially dependent on gas.

In a statement made at a ceremony for the Export Excellence Awards organized by the Pakistan Textile Exporters Association (PTEA), Finance Minister Asad Umar called the textile industry the ‘backbone of the economy’. and added that “The government has a strong belief that economic revolution can only be possible through trade promotion and all possible support is being extended to the export sector to achieve optimum growth.”

 

 
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