The textile industry in Pakistan have urged the government for subsidised gas and electricity rates and tax breaks. Exporters are unclear about the actual energy tariffs for the purpose of quoting prices of products. In September last year, gas supply to the industrial sector (exporters of the zero-rated section, including textile and jute, carpets, leather, sports and surgical) was revised from 28:72 to 50:50 for domestic gas and LNG respectively. The electricity tariff was fixed at a certain level without building other charges (quarterly adjustment, fuel price adjustment and various other surcharges) to the export industry which would be part of the subsidy claim to be picked up by the federal government. But the industry is now faced with an additional quarterly adjustment charged by distribution companies. The industry regrets that implementation of the decisions on reduced energy rates is selective, partial and subject to irrelevant and non-professional interpretations at the lower levels.

A special energy package was extended early this year to the erstwhile zero-rated industry to provide it a competitive energy tariff to expand and increase exports. These rates were notified in October last year but captive power plants were excluded from the ambit of the zero-rated industry. Later, captive power generation of these export units was also included in the same tariff.