ISLAMABAD: The Commerce Ministry has proposed concessionary rates of electricity to cement industry on exportable quantity of cement and clinker, official sources told Business Recorder. According to the MoC, the cement industry holds immense potential for exports. Pakistan exported cement to the tune of $ 266 million in 2019-20 which is expected to substantially increase in future given the business-friendly policies of the government.
Cement and clinkers are exported through sea to major export destinations like Bangladesh, Sri Lanka, Madagascar, South Africa, China, etc.
However, the stakeholders are approaching the Ministry of Commerce expressing grave concerns over the high cost of energy, which contributes significantly to the cost of production and erodes the competitiveness of the industry in the international market. Recently, the government has announced an energy relief package for industrial sector.
Cement sector has approached the Ministry of Commerce requesting that the cement sector being declared as partial export industry; and proposed incentivising electricity rates at the same incentive rate as extended to other industry to the extent of the energy consumed for production of exportable quantity of cement and clinker.
The Commerce Ministry is of the view that supply of electricity to cement industry at concessionary rates will help in reducing the cost of production, thus rendering the industry competitive in the international market.
The Commerce Ministry has also attached a self-explanatory letter from M/s Attock Cement Pakistan Ltd for consideration.
Copyright Business Recorder, 2020
Comments
Comments are closed.