The government’s decision not to allocate subsidies for five export-oriented sectors in the fiscal year 2023-24 has led to the Petroleum Division instructing Sui Northern Gas Pipeline Limited (SNGPL) to provide non-subsidized gas to these sectors. Under this directive, SNGPL will supply a 50:50 system gas and RLNG from March to November, and 100 percent RLNG in the remaining months without any subsidy.
Textile Players’ Plea for Competitive Energy and Gas Rates Unheeded
In a bid to support the textile industry, textile players appealed for competitive energy and gas rates from the government. However, their request went unanswered, as the authorities cited strict terms of the International Monetary Fund (IMF) as the reason for their inability to provide subsidies.
Optimism Amidst Challenges: Strong Cotton Harvest Expected
Despite the lack of subsidized energy, the textile industry remains hopeful due to expectations of a robust cotton harvest in Punjab this season. This development could potentially lead to better results for the sector.
APTMAs Demand the Resumption of Cheap Energy Supplies
The All Pakistan Textile Mills Association (APTMA) previously requested the government to resume gas and electricity supplies at affordable rates. They warned that failure to do so would result in unemployment, loss of export earnings, and further deterioration of the trade balance.
