Govt to provide Rs20bn subsidy to export sectors for coming financial year, reveals Azhar

• The government has been providing base power tariff of 7.5 cents to export oriented sectors since January 2019, said Azhar.
• The development comes after the government and reached an agreement with the textile exporting sectors.

The government will provide Rs20 billion in subsidy to the export oriented sector, for the coming financial year informed Federal Minister for Economic Affairs Hammad Azhar.

In a series of tweets, the minister said that the government has been providing base power tariff of 7.5 cents to export oriented sectors since January 2019. “It will continue to do so till June 2020 and will also absorb add-ons on top of this base tariff (excluding taxes) from January 2019 till June 2020,” he said.

The minister added that for the next financial year 2020-21, “the total sum of subsidy (including cross subsidy and/or allocation) combined for power and gas that is to be passed on to these sectors shall be capped at Rs20bn and the resultant tariffs shall be notified accordingly.”

The development comes after the government and reached an agreement with the textile exporting sectors. The government showed its resolve to provide all necessary support to these industries for better economic growth of the country.