Fozia Azam

Pakistan’s sports goods industry has sought enhanced support from the government in terms of resuming subsidies on electricity and gas, and facilitation to enhance product manufacturing to cater to the demands of international brands more effectively. Secretary General Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) Mohisn Masood said while talking to WealthPK that the competitive edge of Pakistan’s sports goods sector is ensuring quality standards that have played an effective role in attracting international brands to source their professional sporting goods equipment from Pakistan.

“Provision of relief on electricity and gas will help meet the international orders more efficiently, which will increase sports exports,” he said. Mohsin said the prevailing economic and energy crisis, along with heavy taxation, had already jeopardised the export-oriented sectors as the situation is causing hurdles to meeting international market requirements timely. “Currently, it is really hard for the industry to continue working with high electricity and gas tariffs,” he said. The PSGMEA secretary general appreciated the government’s announcement to provide electricity at subsidised rates of Rs10 to Rs15 per unit to exporters, but so far, it is just an announcement. He said the announcement, if implemented, will provide a sigh of relief to exporters.

“Provision of subsidy on electricity will restore investors’ confidence in the government,” he said. Earlier, the Rs80 billion subsidy on gas to five export-oriented sectors, including sports, was withdrawn as Sui Northern Gas Pipelines Ltd (SNGPL) decided to end the supply of subsidised gas from May 1, 2023. The government was previously paying the subsidy to textile, sports, surgical, leather, and jute sectors. Pakistan sports goods exports witnessed an increase of 29.36% during the first five months (July-November) of the current financial year (2022-23) compared to the corresponding months of the last fiscal year.

Credit: Independent News Pakistan-WealthPk