ECC Okays Provision Of Subsidised Gas, Power To Five Export-Oriented Sectors For One Year.

ISLAMABAD -- The Economic Coordination Committee (ECC) of the Cabinet on Monday has given approval for provision of subsidised gas and electricity to the five export-oriented sectors across the country for one year (till June 30, 2023) to reduce cost of manufacturing and enhance exports.

Ministry of Commerce presented a summary on regional competitive energy rates for export oriented sectors during financial year 2022-23. It was submitted that in pursuance of the decisions of ECC dated 16th August 2021 and the Federal Cabinet dated 24th August 2021, the government provided energy to the export oriented sectors namely textile including jute, leather, carpet, surgical and sports goods at regional competitive rates to reduce cost of manufacturing and enhance exports.

The ECC, which met under the chair of Finance Minister Miftah Ismail, has approved to supply electricity at 9 cents per kWh and RLNG at $9 per MMBTU without disparity and all inclusive to five export-oriented sectors namely textiles including jute, leather, carpet, surgical and sports good across the country for one year. The government would provide Rs60 billion subsidy on providing subsided electricity and gas to industries. The ministry of commerce has claimed that Rs20 billion for electricity and Rs40 billion for RLNG have been allocated under federal budget 2022-23 to supply energy at concessionary tariff to five export oriented sectors.

Earlier in this month, a high level meeting chaired by Prime Minister Shehbaz Sharif had agreed that electricity at 9 cents per kWh and RLNG at $9 per MMBTU all-inclusive will be provided to export-oriented sectors. The ministry of commerce has recommended the ECC for providing electricity at 9 cents per kWh all-inclusive to export oriented sectors from July 15, 2022 to June 30, 2023. Meanwhile, it has proposed that RLNG may be provided at $9 per MMBTU all-inclusive to five export-oriented sectors from July 1, 2022 to June 30, 2023 across Pakistan without any disparity. It further recommended that RLNG may be provided to SSGC consumers on same concessionary tariff as that of SNGPL consumers of five export oriented sectors. It has also asked...