Minister of State for Revenue Hammad Azhar Saturday said that the PTI-led government is going to present five-year medium term economic revival plan, to help strengthen the national economy in real term.
Talking to media after a meeting with the delegation of All Pakistan Textile Mills Association (APTMA) at its Lahore office today, Hammad said the State Bank of Pakistan (SBP) has brought the local currency to its actual value. "In the past, the government had taken loans of US $25-30 billion to stabilize the Pak rupee which left negative impact on the economy,' he said.
He further said that government will give relief to the export industry by releasing Refund Payment Orders (RPOs).
Hammad Azhar assured that the government is determined to liquidate all pending refunds of the industry. The field formations of FBR will be directed to process pending refunds, enabling the industry to avail the instrument of promissory note. At the same time, he said the old refunds of the industry would be paid in cash.
He also assured that the tax credit, due on account of investment, would also be processed. He has assured of constituting a committee to redress fiscal matters of the exporting industry.
Terming the suggestion of recovery of Non Performing Loans tax as a good one, Azhar said that government is taking steps to double the exports of the textile sector.
He also said that government is constituting three member committee to solve the problems of the textile industry. He further said that government will also take steps for the revival of close industry.
Azhar said that government is working on National Agriculture Policy as working on the reasons for the shortfall in the cotton crop. He also said that we will bring new policy regarding polyester fiber.
He said that government is fencing the Pak-Afghan border to stop smuggling and the government will cover the cost of the fencing in one year due to the stoppage of smuggling.
State Minister for Revenue was of the view that if the PTI government follows the economic policies of the previous government then the budget deficit might go to seven percent.
Speaking on the occasion The All Pakistan Textile Mills Association (APTMA) Chairman Syed Ali Ahsan has said that the textile industry has envisaged to undertake new investment initiatives for technology up-gradation and value addition which will not only generate more exportable surplus but also new jobs, once the viability is fully restored.
"The industry is determined to double exports in next 5 years with the investment of US $7 billion which will create new 1.5 million jobs," he added.
He expressed the hope that the visit of the Minister of State would help resolve fiscal matters concerning exporting industry to move forward to achieve exports growth targets.
Chairman APTMA said the textile industry is the backbone of the economy of the country which strived hard for its survival in the last decade wherein 30% of the production capacity remained impaired.
He thanked the PTI government for taking drastic measures for the sector growth, including the announcement of affordable energy package for exporting industry and removal of sales tax and custom duty on import of cotton, basic raw material; which is already short for consumption in the country.
He assured the visiting minister of not disappointing the government struggling for reduction in the trade account deficit by increasing exports. The positive results of the major decisions taken by government for industrial growth will be encouraging from January 2019 onwards, he added.
He pointed that there are some pending issues of industry which are still hurting exports growth and seek immediate intervention from government.
He suggested that the government should undertake further enabling measures pivotal for revival and long term growth of the industry which include liquidation of all pending refunds of the industry on account of sales tax and duty drawbacks and a strict monitoring of the entry and sale points to stop entry of smuggled goods in the larger interest of the domestic commerce.
Patron-in-Chief APTMA Gohar Ejaz said provision of the enabling environment for the industry is a must to achieve the targets of earning foreign exchange, including liquidity improvement, cotton production and new investment as a way forward of the exporting industry.
Rehman Naseem, Chairman APTMA Standing Committee on FBR Affairs, gave presentation to the minister on issues and way forward for the growth of textile industry.
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