IMF pressure: Federal Government gives a blow to the export industries
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ISLAMABAD: In a major U-turn, the Federal Government has reportedly backed out from its decision to supply electricity to five export-oriented sectors (erstwhile zero rated sectors) at cents 9 per unit for the entire current fiscal year (CFY 2022-23) after a summary approved by the Prime Minister was sent by the Finance Division in “violation” of rules of business 1974, well informed sources in Commerce Ministry told *Business Recorder*.
Insiders claim that the decision has been taken to meet the conditions of International Monetary Fund (IMF) as the Fund has not supported additional funding for export-oriented industry.
Cabinet’s Division Deputy Secretary, Muhammad Ashfaq, in a letter to Secretary Finance, Secretary Commerce, Secretary Power Division and Additional Secretary Cabinet stated that Finance Division sent a summary titled “regionally competitive energy rates for export oriented sectors during FY 2022-23 (effective from July 1, 2022)” to the Prime Minster for amendment in the approved minutes/ decision of the Cabinet for approval of Prime Minister, whereby, a corrigendum was sought.
Cabinet Division, in its letter apprised that as per standard procedure, in case of an amendment/ correction/ revision by a Division a written request is required to be made to the Cabinet Division and subsequently the latter thereafter sends a summary to the Prime Minister for approval with its views in terms of rule 8 and 20(14) of the Rules of Business, 1973.
