PM's package: Rs 2.5 billion released

The government has released Rs 2.5 billion for implementation of the Prime Minister's Export Incentives Package bringing the total released amount to Rs 16.5 billion, it was learnt. Official sources revealed to Business Recorder that exporters have submitted about Rs 23.5 billion claims to the State Bank of Pakistan (SBP) so far. The SBP has still Rs 600 million available, but exporters' claims are under the verification process and the amount would be released after verification.
Besides this, the government has released around Rs 3 billion for non-textile sectors so far, covered in the PM package, sources added.
The Economic Coordination Committee of the Cabinet had amended the PM Package in October to further facilitate the textile sector, and now 50 percent of the drawback will be provided without condition of increment, and remaining 50 percent will be provided if the exporter achieves an increase of 10 percent or more in exports during fiscal year 2017-18 as compared to fiscal year 2016-17.
To further facilitate the exporters and diversify the market, an additional 2 percent shall be allowed for exports to nontraditional markets - Africa, Latin America, non-EU countries, Commonwealth of Independent States and Oceania.
On December 12, the Ministry of Textile and Commerce introduced major measures to facilitate duty drawback of local taxes, including revolving limit will be provided by the Finance Division to the SBP, speedy verification of claims through the Federal Board of Revenue (FBR) electronic data access to the SBP and the elimination of role of textile associations in claims verification.
In this regard, the ministry had issued a notification, ie 'Duty Drawback of Taxes Order 2017-18.'
Under the new procedure for claims issued by the ministry, the SBP in consultation with the Ministry of Commerce and Textile Industry shall devise a mechanism to ensure prompt clearance of drawback claims in compliance with this order.
The units shall file claims for the incentive in the form as devised by the SBP and submit it with the authorized dealer. The authorized dealer will scrutinize the claim as per the procedure circulated by the SBP. Claims found in order would be submitted with the field offices of the SBP- Banking Services Corporations (SBP-SSC) within two weeks after receiving the claim from the unit with an undertaking in the prescribed manner.
The SBP will scrutinize the claims and release the amount of claim to the authorized dealers within 30 days by debiting the relevant government head of account. The Finance Division will provide a revolving limit to the SBP. The SBP will request for further release of funds to the Finance Division, once the limit is utilized up to 80 percent.
The authorized dealers will credit the amount of claim received from the SBP within 24 hours to the unit. The FBR will provide electronic data to the SBP for expeditious verification/ scrutiny of claims.
However, the value-added textile export associations have expressed dissatisfactions over elimination of the "role of associations" under new Duty Drawback Taxes Order 2017-18.
In a joint statement, they stated that the government has taken one-sided decision in isolation without consultation the associations. This step of democratic government is highly undemocratic as the associations are the elected platforms of industry's stakeholders.