KARACHI:Pakistan Institute of Labour Education and Research (PILER) has expressed serious concern over reported withdrawal of subsidies to the five zero-rate exports industries from the next fiscal year and a threat by industries owners to close their industries if this facility was curtailed.
In a statement issued here on Friday, Executive Director of PILER Karamat Ali pointed out that in a recent meeting in Karachi the associations of export industries have threatened to close down their business if their subsidies withdrawn under pressure from International Monetary Fund.
According to reports the government under the IMF conditionalities has agreed to withdraw the energy subsidies to five zero-rate industries (textile, leather, carpet, sports, surgical). These industries were being provided RLNG at the subsidized rate of $6.5 per MMBTU and electricity at 7.5 cents per unit and this facility would end on June 30, 2019.
Mr. Ali apprehended that closure of export industries especially textiles and garments factories in Sindh and Punjab would render hundreds of thousands of workers jobless thus a heavy economic set-back to the national exchequer as well as families of poor workers.
He urged all the Employers Federation of Pakistan (EFP) and associations of affected export -oriented industries to convene a joint meeting, seminar or conference to discuss this issue and chalk out future strategy.
He also appealed to the government to restrain from curtailment of the subsidies to the export oriented industries.