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.”