LAHORE: The Pakistan Industrial and Traders Associations Front (PIAF) has said that the cost of doing business has increased manifold, which would lead to a significant decline in exports.
PIAF Chairman Mian Nauman Kabir on Monday appreciated the government for announcing a cut in energy tariff for the value-added export industry, urging the authorities to also extend the same to the local industry as well so that inflation could be curtailed, as increased cost of doing business was hurting it severely.
He also appreciated the government’s commitment to disburse outstanding refunds of the export industry.
The PIAF chairman said that the finance minister had assured the business leaders of disbursing over Rs100 billion under sales tax refund claims. He hailed the government for fulfilling its commitment regarding payment of the stuck refunds of exporters.
He highlighted that gas tariff per mmbtu in dollar terms in Bangladesh was $3.35, India $4.66 and Vietnam $6.
“In Pakistan, the tariff is $7.59, including Rs200 gas infrastructure development cess (GIDC), which is 126pc percent higher than Bangladesh; 62.87pc higher than India and 26.5pc higher than Vietnam.
Commenting on electricity tariff, he stated that electricity tariff per KHW in Bangladesh was $0.09; India $0.09 and Vietnam $0.08. In comparison, he added, the tariff in Pakistan was $0.11, which is 22.2pc higher than Bangladesh and India and 37.5pc higher than Vietnam.
He demanded that gas tariff for the local industry should be reduced at least by 10pc.