A meeting was held at the Finance Division with the Federal Minister for Finance and Revenue Shaukat Tarin in the chair to discuss the new tariff for the Industry/Export Oriented Sectors in the upcoming budget.
The Federal Minister for Industries & Production, Makhdum Khusro Bakhtyar, and the Federal Minister for Energy, Muhammad Hammad Azhar, also attended the meeting along with the Adviser to Prime Minister on Commerce, Abdul Razak Dawood.
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 is a need to generate a database that can establish the nexus between tariffs and the progress of the export-oriented sectors/industry.
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The Minister for Energy also drew the attention of the participants to the scarcity of natural gas in the system (which is cheap), 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 the 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, and particularly the export-oriented sectors. Additionally, the Minister for Finance reiterated his firm commitment to accelerated growth with the willing contribution from the business community.
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After discussion with the relevant stakeholders, the Chairperson decided that for the next budget, subsidies will be allocated on the basis of actual consumption/accrual, and a more targeted approach for disbursement will be adopted.
It was also decided in principle that the growth of the export-oriented sector will be the main objective of the government while offering any change/consistency in the rates so that the industry may use its full potential and play its rightful role in the development of the country.
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