FAISALABAD: Pakistan could not achieve the target of textile export to $50 billion by 2027 due to the political uncertainty and lack of interest by the government in enhancing exports, said Dr. Khurram Tariq, President Faisalabad Chamber of Commerce & Industry (FCCI).
He said that as per a World Bank report the textile sector was fully competent to enhance the exports to $50bn if equal opportunities and level playing field was provided.
He said that the government endorsed this proposal and provided electricity at Rs. 19.99 per unit and gas at 9 dollars per MMBTU.
“This decision yielded positive results as textile exports recorded a 55% increase within a short span of two years”, he said and added that Pakistani export jumped from 11.25 billion to $19.5 billion in 2022.
He said that the government was forced to withdraw the facility of regionally competitive energy tariff as the political uncertainty continued and Discos failed to check the pilferage of electricity and gas. He said that this decision has made Pakistan a costlier country as compared to its economic competitors.
He said that gas is available in Punjab at $13.2, in India $6.1, Bangladesh at $7.6 and in Vietnam at $7.8.
“The Punjab was also facing competition within the country as in Sindh gas is available at $5 whereas it is provided at $13.2 per mmbtu in Punjab”, he said, adding that the five export sectors including textile are now getting electricity at full tariff which is around Rs. 44 per unit.
“On the other hand, electricity is available in India at 7 cent, in Bangladesh at 10cent and in Vietnam at 6 cent per unit”, he said and added that in garb of IMF, the government has pushed the industrial export sector towards total collapse.
He said that if regionally competitive electricity tariff was not provided and theft of electricity and gas was not checked, the industrial sector would come into a grinding halt opening floodgates of unemployment and nullifying the economic progress made so far.
He further said that recovery of FESCO is 99.9% but its industrialists and consumers are forced to pay the theft of other Discos which is against the rule of justice.
He said that the actual cost of electricity in FESCO is around Rs.20 per unit but they are being charged Rs. 44.
He warned the government and economic managers to check this injustice otherwise the situation may become out of control.
He further said that the government should not expect enhanced exports by tying the hand and foot of the exporters and industrialists.
Copyright Business Recorder, 2023
Comments
Comments are closed for this article.