30th March, 2018
FPCCI urges to withdraw the import duty on coal
Syed Mazhar Ali Nasir, Senior Vice President of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has urged the Miftah Ismail, Advisor to PM on Finance, Revenue and Economic Affairs and Muhammad Pervaiz Malik, Federal Minister for Commerce to withdraw the 5% import duty on coal and allow its imports, duty free to make the production of electricity through coal viable and save the huge investment made in the coal based power projects.
The FPCCI Senior Vice President argued that a serious distortion has been created in the production of electricity through imported coal mainly due to 14% rise in C&F price of imported coal from US $19/MT to US $103/MT during the last nine months. Moreover, recent devaluation of Pak Rupee against US Dollar by more than 10% has further eroded the competitive edge of production of electricity through imported coal and rendered the industry at the verge of collapse, he added.“Resultantly, the industry will have no option but either to shift on National Grid again exerting unbearable load on WAPDA or to shut down the industry for economic reasons”, he concluded.
(DR. IQBAL THAHEEM)