Asif Siddiq, former chairman and founder member of PWMA has said that the announcement of the new gas and electricity rates for the five zero-rated textile sectors will be beneficiary for the promotion of exports.
"This facility will help and encourage weavers all across the country to set up and establish new small and medium weaving units and take part in the export
boom which is the very desire and focused policy decision of the current government for addressing the balance of payment crises," he added.
In fact, new units should be encouraged even more to further boost exports, he said. However, added that the bureaucracy, as expected, is not allowing the new connections of these zero rated sectors to avail the benefits of this aggressive government policy to enhance exports at war footing and becoming a hurdle instead of a facilitator in promoting exports.
He also highlighted that there is a lot of confusion that the concessionary rates are for all industry including new or only for already setup mills.
Ministry of Textile or finance should response to this query and stop discrimination of old and new units to make it an equal playing field for all industry.
"This confusion or ambiguity is causing huge losses to the new and upcoming units who have bought the land, ordered machinery only to get a shock from these utility companies who refuse to abide by this policy especially carved for these five zero rated sectors," Asif said.
He said that PWMA is representing weavers across Pakistan and existing members have invested to buy land for expansion of weaving mills after the announcement of the special utility tariff by the federal government.
"Investors and industrialist are shocked by the attitude of the bureaucracy in implementing the new policy initiative taken by the new
government and this approach may discourage exporters to enhance capacity by setting up new units," he added.
He hoped that clear response by the ministry will put an end to discrimination and unfair business practices to protect the old ones from the new connections.