PTEA advocates for zero-rated GST on electricity for export industries

WEB DESK: Pakistan Textile Exporters Association (PTEA) has urged the federal government for timely refund disbursements and the implementation of zero-rated GST on energy bills for export industries.

In a statement released today, Khurram Mukhtar, the Patron-in-Chief of PTEA, highlights the importance of the large-scale manufacturing sector, which accounts for a significant portion of the country’s GDP.

The PTEA has urged immediate structural policy initiatives to revive the economy and stimulate economic growth.

The association identifies several key factors hindering Pakistan’s progress, including rising debts, tax issues, underperforming large-scale manufacturing, and high energy costs.

He expresses concern over the negative growth experienced by this sector, particularly in light of existing challenges such as high inflation and a growing current account deficit.

Mukhtar calls on the government to address these issues and save the industrial sector from further decline. He emphasises the need to negotiate sustainable energy tariffs with the International Monetary Fund (IMF) and rationalise cross-subsidies on industrial energy tariffs to support growth.

Just raising energy tariffs is not going to work; strict enforcement is required to reduce T&D losses and full bill recovery. The current hike in gas and electricity tariffs is disastrous for the economy and lacks any wisdom.

Mukhtar also highlights the impact of liquidity issues on export production, stating that delayed refund disbursements are causing severe financial hardship for exporters.

He urges timely refund disbursements and the implementation of zero-rated GST on energy bills for export industries.

Additionally, he stresses the importance of ensuring easy access to working capital for the industrial sector to promote industrialization and create job opportunities.

Khurram Mukhtar further emphasises the importance of mobilising domestic resources to reduce reliance on imports and promote domestic industries.

He believes that implementing efficient governance practices and digitalization can enhance efficiency, reduce corruption, and improve the business environment.

Mahmood also advocates for the privatisation of state-owned enterprises (SOEs) to improve their efficiency, attract investment, and reduce government burden.

He points out that rival countries have successfully increased their market share in global trade through government support and calls for similar measures to revive Pakistan’s economy.

PTEA calls on the government to prioritise the industrial sector and take immediate action to implement structural reforms that will facilitate industrial revival, reduce the cost of doing business, and safeguard employment.

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