Notification awaited: Punjab starts facilitating five export-oriented sectors

Hassan Naqvi Staff Reporter

06th Aug, 2021. 03:01 pm
electricity

High power electricity poles in urban area connected to smart grid. Energy supply, distribution of energy, transmitting energy, energy transmission, high voltage supply concept photo.

LAHORE: The power distribution companies in Punjab and the Sui Northern Gas Pipelines Limited (SNGPL) have started supplying utilities to the five export-oriented sectors on subsidised tariffs, despite the non-issuance of a notification, in this regard.

The Lahore Electric Supply Company (Lesco), Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Faisalabad Electric Supply Company (Fesco) and the SNGPL were supplying electricity and gas to the five export-oriented sectors, which included textiles, surgical goods, carpets, leather and sports goods.

“Keeping in mind the seriousness of the issue and the importance of exports for the country, the power distribution companies and the gas utility have instead of waiting for the bureaucratic hurdles to be removed, started providing electricity and gas at subsidised rates of nine cents/kWh and $6.5mmbtu to the five-export oriented sectors,” a senior official from one of the power distribution companies told BOL News.

Sources said the summary has been moved by the additional secretary commerce to the Economic Coordination Committee (ECC) of the Cabinet for approval after which it will be sent to the Power Division.

“As soon as the ECC approved it, it will be sent to the Federal Cabinet for approval, which will move it to [the] Power Division for the new notification of subsidised energy tariff for five export-oriented sectors,” the senior official told BOL News.

The sources from the five export-oriented sectors in Punjab highly appreciated this positive gesture of the power distribution companies and SNGPL for realising the importance of continuing the subsidised energy tariff for the export-oriented sector so that we remain regionally competitive and the exports don’t take the hit due to bureaucratic hurdles.

“The additional secretary should have moved the summary on June 30, 2021 or earlier but thanks to [the] power distribution companies and SNGPL for this timely intervention,” a leading exporter told BOL News.

However, the exporters belonging to the five export-oriented sectors are still uncertain about the new energy tariff in the absence of the new notification.

“K-Electric is not supplying electricity to the five export-oriented sectors on subsidised energy tariff of 9 cents/kWh like [the power distribution companies in Punjab,” a leading textile exporter from Karachi told BOL News.

“We request the K-Electric, other power distribution companies in Sindh and [the] Sui Southern Gas Company (SSGC) to follow the footsteps of SNGPL and the power distribution companies of Punjab,” he added.

The exporter said it is a serious matter and the question of the countries’ rising exports, which might take a hit if energy is not provided at the subsidised tariff, as it is 40 per cent of the total cost incurred by the textile exporters.

 

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