Subsidy package extension for one year will boost exports: SAARC Chamber

LAHORE: President SAARC Chamber of Commerce and Industry Iftikhar Ali Malik on wednesday said government timely decision of export Industry subsidised flat tariff package extension for another one year will yield better economic results and boost industrial production besides significantly bolstering export.
Talking to a delegation of industrialists led by Mian Faiz Bakhsh Arain he said that continuation of concessional rates of electricity and regasified liquefied natural gas (RING) to export-oriented sectors on subsidised flat rates was important for sustained increase in exports by providing at regionally competitive rates.He said Pak exports registered an increase of 14 percent during last fiscal year despite global economic challenges and could post even higher growth as significant increase in investment and imports of machinery and equipment for capacity expansion had been seen over the past months.

Iftikhar Ali Malik emphasised the need for incentivising export-oriented sectors to take exports to the next level and government must rationalise usage of energy inputs. He said that federal government in this regard had already earmarked Rs 26 billion subsidy for cu fiscal year.He said NEPRA ( National Electric Power Regulatory Authority) has also approved same package across the country without the application of expensive peak charges.

Iftikhar Ali Malik said this package of cheap electricity will bring down the cost of production and ultimately help a lot Pak exporters to compete globally in international markets especially with their neighbouring competitors. He said provision of 7/24electricity to Industry will also play key role in timely meeting the export targets at their foreign destinations.
He hoped that under the dynamic leadership of Imran Khan after bearing the brunt of previous governments corruption based power policies now “country starts moving towards prosperity with sustainable economic growth”. He said IPPs expensive electricity caused price hike and inflation in the country and poor segments of the society suffered a lot. He said cheap power is imperative for the survival of the industry which he added is only possible through launching of new hydropower projects.
Iftikhar Ali Malik expressed his gratitude to Prime Minister and Federal Finance Minister Shoukat Tarin and PM Adviser on Commerce Razak Dawood for providing solace to hard hit traders and businesses community.