ISLAMABAD: At least 11 companies made a total investment of $6.324 million out of Pakistan during the last five years. Majority of companies which shifted their business and capital abroad were industrial units.
The issue of capital flight had been a matter of concern for both the incumbent and previous governments.
According to a study carried out by Finance Ministry and findings of the said report available with Customs Today revealed that the highest amount of capital was shifted by The Colony Industries (Private) Limited and amount was $ 4.500 million in April 2012.
While the minimum amount was shifted abroad by 0. 050 million by two companies including Sabir Textile Mills Limited and Naveena Exports Limited in May 2012 and December 2013 respectively.
Out of eleven transactions first ten were made in financial years 2012 and 2013 and only one transaction was made in the fiscal year 2014.
The reports states that these transactions were made with the permission of the government with the prior approval of the State Bank of Pakistan (SBP). In this regard, SBP issued a circular FE-12 in September 2001.
By virtue of this circular the State Bank of Pakistan approved following companies for investment in textile related business abroad in last five years.
The report states that it is evident from the data, some companies have established their branch/ liaison/ marketing offices abroad to market their products. It can also be gleaned from the data that no company has invested abroad in 2015.
In the light of this report that the Finance Ministry announced a special package for revival industrial units as well as bringing the flown capital back to the country including the benefit of drawback of local taxes and levies scheme remained available for the textile exporters.
Under this incentive exporters will be entitled to the drawback on FOB values of their enhanced exports if increased beyond 10% of their previous year’s exports.
