PYMA concerned at discontinuation of concessional package by Ogra

KARACHI: Sohail Nisar, Senior Vice Chairman, Pakistan Yarn Merchants Association (PYMA), after the discontinuation of the electricity concession package expressed deep concern over the discontinuation of the gas concession package for the textile sector by the Oil and Gas Regulatory Authority (Ogra).

He has appealed to Prime Minister Shehbaz Sharif to continue the concession packages for electricity and gas to save the textile industry, which is a backbone of the national economy.

In a statement, Sohail Nisar said that the government had already terminated the electricity relief tariff.

He said the discontinuation of the gas concession package will cause an enormous increase in the production cost of the textile industry.

“As gas is the fundamental raw material for keeping the production activities of the textile industry running, the government should create ease for industries and take measures to reduce production costs instead of creating difficulties.

This will enable timely production of export goods and the delivery of orders to foreign buyers as promised,” he added.

He further said that according to the media, the federal government has ended the supply of RLNG at $ 9 per MMBTU to the textile, sports, surgical, leather, and jute sectors, while withdrawing a subsidy of Rs 80 billion on gas for these five sectors. After this, the export sectors will have to pay additional $ 4 per MMBTU on RLNG, while the gas rate for these income sectors will now be $ 13 per unit, and the new rates will be implemented on all income sectors from May 01.

Sohail Nisar urged the government to continue a subsidised package of electricity and gas for the textile industry, as the industries cannot bear the burden of additional costs, and production costs will become unbearable.

Copyright Business Recorder, 2023