The Pakistan Hosiery Manufacturers Association (PHMA) chairman Adil Butt has welcomed the approval of subsidy to the SNGPL for gas supply to the five zero-rated industrial sectors in Punjab. He expressed his deep gratitude to Prime Minister Imran Khan for keeping his words of reviving the export-oriented industry by announcing equal gas tariff across the country. He said the government in September had announced providing gas and electricity to the five zero-rated exporting sectors at regionally competitive rates, which was also endorsed by the Economic Coordination Committee (ECC). However, the long delay in implementation of this energy affordability initiative continued to panic the Punjab export-oriented industry.

The finance division has approved around Rs 26 billion for the financial year 2018-19 to be provided to the SNGPL for supply of gas to the export industry at $6.5/MMBTU while Rs 2.5 billion has been released for October and November in this regard. Butt also urged the government to rationalise the duties structures and minimise taxes and duties on import of raw materials and instead apply duties on import of finished/luxury goods in order to facilitate the domestic industry.

He also urged the ministry to discourage export of raw material and encourage export of value-added items. He reiterated the request of value-added textile exporters to the State Bank of Pakistan to facilitate exporters' authorised dealer to make import advance payments against irrevocable Letters of Credit (L/C) up to 100 percent of the value of the goods and up to $10,000 per invoice for the import of all eligible items without the requirement of L/C or Bank Guarantee from the supplier abroad.