ISLAMABAD– The government on Thursday decided that subsidies to the export oriented sector in the upcoming budget for the next fiscal year (2021-22), would be given on the basis of actual consumption/accrual, while more targeted approach for disbursement would be adopted.
The decision was made during a meeting that was convened to discuss the new tariff for the Industry/ Export Oriented Sectors in the upcoming budget, according to press statement issued by the Finance Ministry. Federal Minister for Finance and Revenue Shaukat Tarin chaired the meeting.
The finance minister, on this occasion, reiterated his firm commitment for accelerated growth with the willing contribution from the business community.
It was also decided in principle that the growth of export oriented sector would be the main objective of the government while offering any change/consistency in the rates, so that the industry should use its full potential and play its rightful role in the development of the country.
Earlier, different options for concessional tariff were discussed in the meeting along with their implications on the subsidies, earnings, production and revenue generation.
It was a general consensus that there was a need to generate a database which could establish the nexus between tariffs and progress of the export oriented sectors/industry.
The Minister for Energy also drew the attention of the participants towards the scarcity of natural gas in the system (which is cheap) and the excess units of electricity available at a higher rate, and, to the already decided principle that the domestic users have the first right of use in case of natural gas.
It was also acknowledged in the meeting that the least cost units offered by the government have proved beneficial for the overall productive health of the economy especially export oriented sectors.
Among others the meeting was attended by Federal Minister for Industries & Production, Makhdum Khusro Bakhtyar; Federal Minister for Energy Muhammad Hammad Azhar and Adviser to PM on Commerce Abdul Razak Dawood.
