Prime Minister Nawaz Sharif is likely to announce an incentives package for "upset" exporters at a meeting with the representatives of FPCCI and exporters associations on Friday (today). "Prime Minister is expected to announce payment of refunds to exporters stuck with FBR and zero rating on exports" said an official.
The package has been prepared by the Ministry of Commerce after five hours consultations with exporters association. Different Associations raised all of their issues in the presence of Commerce Minister Engineer Khurram Dastgir Khan, Prime Minister's Special Assistant on Revenue Haroon Akhtar Khan, Shahid Khaqan Abbasi, and other officials. , However, Minister for Finance, Senator Ishaq Dar and Minister for Industries and Production Ghulam Murtaza Jatoi were not present in the five hours long consultative session.
The sources said, representatives of exporters were of the view that they are not competitive with the neighbouring countries especially India and Bangladesh and requested the government come out to support them. Besides representatives of all the trade bodies and business associations, chairman Trade Development Authority(TDAP) and President Pakistan Federation of Chambers of Commerce were also attended the meeting to discuss issues being faced by their respective sectors, which led to downfall of exports in subsequent years.
An insider told this scribe that when representatives of textile sector proposed that their tariff should be slashed to 9 cents per unit. However, Petroleum Minister suggested that if textile sector returns back 687 MMCFD gas to gas companies which is being supplied to Captive Power Plants (CPP) the government will supply the electricity at 9 cents. The representatives of textile sector from Punjab agreed to the Minister's proposal, however, textile sector from Karachi did not show consent.
The recommendations finalised at the meeting will be presented to the Prime Minister on Friday, who is likely to announce a package for the business community to push the export for meeting the ambitious target, which has not been achieving for the last two consecutive years.
"Outstanding export refunds of Rs 100 billion, high energy tariff , high gas surcharge on the industrial sector and complicated taxation system of the country remained the major concerns of the producers and exporters and they held these factors responsible for the downfall of the country's exports," the sources added.
Latter addressing a press conference, Commerce Minister Khurram Dastigir Khan said it was an intensive consultative discussion with all the stakeholders and numbers of fruitful recommendations were made by the representatives of their respective sectors. He added that these recommendations would be presented to the Prime Minister on Friday for taking a final decision as what incentives to be given to the business community for boosting exports as enshrined in the trade policy, which is being finalised.
"The government would take all the possible measures to facilitate business community for giving an impetus to the export," he noted. He said that in addition to many other incentives, the key focus would be on uninterrupted supply of power to the industry from the end of this year, addressing the bureaucratic hurdles and complications in the taxation system and paying the refunds timely. He said that there is also need to promote industrial competitiveness to compete with our regional and international competitors.
FPCCI President Mian Idress said that the Prime Minister has taken keen interest in addressing the issues of business community to boost the exports. "There are multiple issues for the business community which could not be resolved without direct involvement of the Prime Minister himself," he noted. He said that they would discuss their issues with the Prime Minister also give him the solutions. "All the allied ministries and concerned stakeholders have to work jointly to overcome these challenges," he noted.
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