Former president of KCCI and patron of SITE Association of Industry (SAI), Zubair Motiwala, has urged Prime Minister Imran Khan to consider lowering of gas tariff and RLNG rates so that the cost of production of exporting industries is reduced, and exports get a boost.
He pleaded to reduce the gas tariff in view of international oil prices which are at the lowest level now. This move will greatly help exporting industries in reducing production costs.
He also appealed to the prime minister to save the exporting industries in general and textile sector in particular from total collapse amid the coronavirus pandemic and subsequent severe economic crisis.
He said that amid corona pandemic, industries remained closed for about two months which are now being re-opened gradually under strict SOPs.
However, as the pandemic became a worldwide phenomenon, USA and European countries closed their borders for trade which badly effected exports from Pakistan as the foreign buyers refused to take delivery of ready shipments.
In addition, a large number of export orders have been cancelled.
"Under the current scenario, the exporters are facing severe liquidity crunch as their money has stuck up in ready shipments whose deliveries have been refused by foreign buyers. As such, there is a need to support the export industries in the wake of the current economic condition," he pointed out.
He said that OGRA calculated gas price at the rate of 60.7 dollars per barrel of Brent crude which has now lowered to 25 dollars, and a cut of nearly 40 percent in gas prices is now possible.
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