Finance Minister Miftah Ismail Saturday said the government will announce export package next week with a view to increasing exports to $27 billion in the next fiscal year. The government will release around Rs 100 billion to exporters under the sales tax refunds before the end of its tenure, he assured the members of Council of All Pakistan Textile Associations (Capta) at a meeting held at the PHMA House.
He said the government plans to support other export sectors such as fruits, vegetables, small engineering, electronics, fans and leather gloves makers with an incentive package of Rs 100 billion in the next fiscal year. He said the government will reduce the FBR tax collection targets for the next fiscal year to reduce the held-up amount of exporters in first place. The release will settle somewhat the long-running refunds claims placed by exporters; he pledged that the disbursement will start "before we go out."
About the export policy, he said the government will introduce it in the next five days to see the growth up to $27 billion in the next financial year. Overall exports, the minister said, are expected to come to $23 billion by the end of this fiscal year.
In April 2018, exports grew by 18 percent and imports two percent. In March, exports scaled up by 24 percent against six percent imports with the rupee depreciation, he said, adding that the duties on imports made for export-oriented industries will be reduced.
To a demand from the Capta Coordinator Muhammad Javed Bilwani, he agreed to consider the proposal to permit the textile knitting sector to import yarn under the DTRE. He also assured the exporters that the government will 'waive' the DLTL time bar for attaining the claims. On a proposal by Chairman Capta, Zubair Motiwala, he said that the government is likely to consider it to set up an endowment fund on the EOBI, adding that "I will talk to the prime minister on it."
The minister lauded its government for the 5.8 percent growth in GDP, saying the key issue is to restrict the inflation and increase exports. To a question by a newsman, he said that the public has to scale back its consumptions for a period to help reduce imports and let exports augment. To another question, he blamed the Sindh government for 'negative' role to develop Karachi, saying "KWSB has to pay Rs 35 billion to the K-Electric for utilizing power."
However, he also slammed the K-Electric for not making a pledged investment in the last 10 years, failing to upgrade its power generation capacity and capabilities to meet the soaring energy challenges of the city. He said that the federal government is still ready to provide the K-Electric with more gas supplies, but showed uncertainty whether it will be able to produce more than what it is making.
He also offered the city's industrialists with the government's support to set up a plant to desalinate about 50 million gallons of water per day that he believed will help relieve the industries key input utility problem.
Motiwala, Bilwani and other exporters said that the held-up refunds of sales tax have badly increased their financial crisis. They sought an immediate solution from the federal government.
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