Five export-oriented sectors get subsidized power, gas tariff
by Yasir Habib Khan
In order to meet $35 billion export target in the 2021-22 fiscal year, five export-oriented sectors, i.e., textiles, surgical goods, carpets, leather and sports goods have started receiving subsidised electricity and gas tariffs.
Power distribution companies in Punjab including the Lahore Electric Supply Company (Lesco), Gujranwala Electric Power Company (Gepco), Multan Electric Power Company (Mepco), Faisalabad Electric Supply Company (Fesco) and the Sui Northern Gas Pipelines Limited (SNGPL) are supplying subsidized electricity and gas to the export-oriented sectors.
In 2020-21, Pakistan achieved the export target of $25.3 billion including $15.5 billion in textile and $2 billion in IT services. The previous fiscal year’s exports were nearly $4 billion higher than in the year 2019-20, when they reached $21.4 billion.
The subsidised energy tariffs stand at 9 cent/unit electricity and $6.5 per MMBtu for gas for the five export-oriented sectors as federal government has allocated Rs26 billion for electricity and Rs10 billion for gas in the Federal Budget 2021/22.