In yet another setback, the Government of Pakistan has reportedly decided to do away with zero rate status to five industrial sectors, which are textile, leather, carpet, sports and surgical.
The Government made clear its decision while extending assurance to the International Monetary Fund (IMF) in this regard.
It has also decided to take back the energy package (RLNG at US $ 6.5 per MMBTU, and electricity at 7.5 cents per unit) earlier extended to zero-rated sector till June 30, 2019.
“Yes, from next budgetary year, there will be no energy package that earlier the Government had extended to zero-rated industry, and the decision has been reversed under IMF pressure,” a senior official close to a Government adviser maintained while interacting with the media.
The Government’s move has reportedly created a sense of uncertainty in the industry.
Reacting to the Government’s decision, Patron-in-Chief of All Pakistan Textile Mills Association (APTMA) Gohar Ejaz maintained that this decision will bring down the exports from US $ 24 billion to US $ 21 billion and it will put the exports of Pakistan in jeopardy.
As per Gohar, industry in Sindh is getting gas at US $ 4 per MMBTU and 70 per cent textile industry of country which is in Punjab will be getting the gas at US $ 12 per MMBTU.
“This step motherly treatment will put an end to textile industry in Punjab,” Gohar said.