KARACHI: President North Karachi Association of Trade & Industry (NKATI) Faisal Moiz Khan, while expressing serious concerns over discontinuation of the Zero Rated Industrial (ZRI) package for the export-oriented sector under the pressure of the International Monetary Fund (IMF), has rejected the Federal Cabinets’ decision.
In an appeal, NKATI president requested the Prime Minister Mian Muhammad Shehbaz Sharif and Federal Minister Energy Engr. Khurram Dastgir to withdraw the decision to discontinue the ZRI facility for zero-rated export industries in the best interest of the country’s economy. Otherwise, it will have a devastating impact on export industries, especially small and medium industries (SMEs) including textiles.
“SMEs would not be able to bear the burden of expensive electricity, and it is feared that SMEs will be shut down, which will not only affect exports but also leave millions of workers unemployed.”
He pointed out that after the approval of the Federal Cabinet, the Ministry of Energy Power Division has notified the discontinuation of the Zero Rated Industrial (ZRI) package for export-oriented sectors at the rate of Rs. 19.99 per kWh (all inclusive) effective from March 1st, 2023.
“In the notification, CEOs of all DISCOs, Chief Executives of Electric and Chairman Federal Board of Revenue have been informed to immediately suspend the facility of cheap electricity to the export sector and ensure immediate implementation of the orders.”
Faisal Moiz appealed to the Prime Minister Mian Muhammad Shehbaz Sharif and Federal Minister Energy Engr. Khurram Dastgir to withdraw the federal cabinet decision and implement economy, industry-friendly measures, saying that the high flight of dollar, closure of LCs, delay in clearance of consignments at the ports, electricity, gas high tariff the production cost of industries has already increased enormously, which has adversely affected the production activities.
“Now, by ending the facility of subsidized power supply to zero-rated export sectors, the industries, especially the SMEs, will be devastated”, he feared.
Faisal requested that the government should facilitate by supporting the industries to bring the economy out of crisis, and bring economic prosperity so that we can stand on our feet again and create more employment opportunities.
