The government has reportedly turned down exporters' demand to depreciate rupee, lower gas price and withdraw Gas Infrastructure Development Cess (GIDC), it was learnt. On Friday, Prime Minister Nawaz Sharif held a meeting with the heads of Federation of Pakistan Chamber of Commerce Industry (FPCCI) and export groups and listened to their grievances and their suggestions to reverse declining exports.
Finance Minister Ishaq Dar reportedly refused to agree to allow the rupee to depreciate, while the Petroleum Minister termed the reduction in gas price impossible. A demand to restore zero rating facility to five export oriented industries was also rejected, however, the government assured exporters that the issue of delays in refunds would be dealt with in one week.
Petroleum Minister Shahid Khaqan Abbasi reportedly stated that the government can not reduce gas prices for textile sector or withdraw GIDC. Gas prices were raised after a long period of time while GIDC was imposed on all sectors and withdrawal from textile sector would create an anomaly and lead to legal implications, he added. Shabbir Ahmed, a senior representative of bed-wear sector, termed the outcome of the meeting 'trifling' in marked contrast to the expectations created by the federal government. He dismissed the meeting as a "mere show" and implied that the objective may have been the outcome of the forthcoming FPCCI elections.
According to press release of Prime Minister Office, the Prime Minister on Friday convened a meeting of the representatives of business houses and export groups to deliberate on the measures to increase country's exports. He was concerned over stagnant exports whereas exports of other countries of the region are rapidly growing. He wanted the meeting to review the stagnation of exports and suggest a remedy for fast improvement in the export performance.
Nawaz Sharif added that the government is aware that there is a global economic slowdown and prices of the commodities are falling but even in this challenging environment, government and business houses will have to adopt innovative strategies for increasing exports. The Prime Minister said that providing subsidy to different sectors of the economy needs resources and resources are generated by robust economic activity. Subsidy or relief packages if opted as a policy measure must produce economic returns to boost investment and business activity, he added.
The Prime Minister informed the meeting that government will fully support the industrial, trade and investment sectors for registering increase in the production and inducing growth in the economy. The Chairman FPCCI, speaking on behalf of the business community, assured the Prime Minister of full co-operation from the industrial and trade houses of the country and acknowledged the business friendly-policies of the government and appreciated the improvement in law and order situation which has contributed to enhanced trade and economic activities. The chairman FPCCI stated that business representatives will give suggestions and identify various factors which are hindering business ventures and will propose measures for raising confidence of the investors.
Chairman FPCCI informed the meeting that business community appreciates the co-operation of the government but would like more support from government particularly with regard to facilitation in the area of ease of doing business. The Chairman FPCCI presented a set of suggestions/proposals before the meeting for consideration to build a business-friendly atmosphere between the government and private sector.
The Prime Minister in his concluding remarks observed that in today's meeting some very useful discussions have been made and all participants agree to see the country move forward on the path of development and progress. The Prime Minister stated that his government has introduced fair and transparent policies and this has been the hallmark of his governments. Prime Minister added that conditions today are far better than two and half years ago and the government has taken some major decisions to redress the deficiencies prevalent in the economy and power sector.
The Prime Minister apprised the meeting that government has taken the challenge of terrorism head on and a decisive war was launched through the operation Zarb-e-Azb, which has dismantled the infrastructure of terrorism from the country and terrorists are now on the run. The Prime Minister said that success against terrorism is the result of unprecedented valour and commitment of the armed forces for the peace and stability of the country. The officers and Jawaans of our valiant armed forces have rendered tremendous sacrifices and even the children laid their lives in this national effort.
The Prime Minister further reaffirmed that these sacrifices will keep the resolve of the nation against terrorism alive. The Prime Minister said that the Karachi operation has completed its two years and it will be taken to its logical conclusion.
The miscreants now are carrying out coward last-resort attacks but are destined to be defeated ultimately. The situation in Karachi has improved to a greater extent and local and international business activity is witnessing signs of revival. The government has taken all major decisions with consensus and made amendments in the constitution and law and has displayed courage to punish the culprits for their heinous crimes.
The Prime Minster said that in this war against terrorism the whole nation should be one body politic. The Prime Minister said that economic revival has set in and economic indicators are improving. In the next three years the government will make a substantial improvement in meeting the shortage of energy and many initiatives and projects are in the offing in these sectors. He advised the business community to conceive forward planning in view of the prospects arising out of the mega regional development initiatives CPEC and TAPI. The Prime Minister apprised the business community that these mega projects coupled with development of infrastructure in the form of motorways and upgradation of Gwadar port will open up new avenues of economic activities which can be capitalised by Pakistan's business community, the press release concluded.
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