The textile sector in Pakistan will get an enhanced supply of natural gas.
Availability will be increased to 42 per cent from 28 per cent i.e. from two days a week to three days a week.
Pending refunds of exporters will be paid in the next fiscal year in various installments starting from July 2018.
The industry wants refunds to be paid where refund orders have been issued. Exporters say the rebate on exports announced in the textile package has not been paid and consequently the liquidity problem of the textile sector has worsened.
Refunds have not been processed for one-and-a-half-years. Pending refunds of the industry up to December 2016 are yet to be paid. As a result of the delay in refunds, more than 30 per cent of the cash flow is blocked now.
Exports grew by 18 per cent, but the seven per cent rebate on exports was not paid, say exporters.
Exporters want a supply of natural gas three days a week during Ramazan because LNG is becoming an expensive input for them and making their exports uncompetitive in the global market.
The textile industry in Pakistan contributes 57 per cent to the country’s exports. The country is working on upgrading its supply chain, improving productivity, and maximising value addition.
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