The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has linked the over 17 percent decline in exports during July 2015 to shortages of electricity, gas and water to the industrial sectors hampering production across the country. Vice President/Regional Chairman Khawaja Zarar Kaleem said the stuck-up refunds of the exporters in Federal Board of Revenue and the State Bank of Pakistan had aggravated the situation causing financial crunch in the export oriented industry.
"The shortages of electric and gas have caused closing of various industrial units in the Punjab and some are on the verge of closer while the industries in Karachi have fallen prey to the water mafia and they are purchasing their own water on very high rates," he claimed.
He reiterated that the exporters are constrained to obtaining loan from commercial banks to address their financial crises because of their stuck up refunds with FBR and SBP which ultimately increase the cost of doing business. He, however, appreciated the Trade Development Authority of Pakistan Chief Executive SM Muneer and his team for doing best to promote exports. The problems of shortage of energy and water are beyond the control of TDAP. However, the shortage of working capital of exporters can be resolved, if government releases their refunds.
He said that these refunds and rebates have unfortunately been accumulated to over Rs 200 billion during last two years and are adversely affecting the cash flow of the exporters. He also said, "FPCCI has been raising the above issues along with suggestions many times in different meetings with the government officials and ministers." He then urged for early refunds as per the commitment of the Finance Minster Senator Ishaq Dar.
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