As the industry awaits the notification of the government’s recent energy relief package, PRGMEA has appealed to the Prime Minister to remove the restriction on additional utilization of electricity to make the package more comprehensive and attractive for the SMEs which constitutes over 90 per cent of the industry.

Sohail A Sheikh, Chairman, PRGMEA urged the concerned departments to issue notification of the incentive package regarding power tariff for the large, small and medium enterprises after amendments. He said the role of value-added textile sector is vital in the country’s exports and the government should accord top priority to this sector taking necessary steps and measures to enhance its export efficiency. He said that electricity rates are high in Pakistan and it is for the first time that power rates are being reduced.

Sheikh further said that the export-oriented industry, for a long time, had been facing multiple challenges in the wake of high cost of manufacturing, exorbitant utility tariffs and high labour wages comparing to the competitors on the world markets.

IjazKhokhar, Chief Coordinator observed that an industrial support package for SMEs through power tariffs is imperative to sustain some early positive signs in the industrial sector. However, the exporters are confused about its actual shape until it is set in motion through a proper notification for implementation, he said

Doubts regarding the International Monetary Fund’s loan program have also been affecting business confidence, as the economic managers would have to devise a clear road map on power sector and revenue reforms committed to the IMF for continuation of the loaning ahead of the next budget, Khokhar added.

According to reports, the industrial relief package had initially involved around Rs350 billion over three years but later it was amended to avoid completely derailing the IMF program.