ISLAMABAD: The Senate Standing Committee on Commerce has informed that out of Rs 300 billion pending sales tax claims, the Federal Board of Revenue (FBR) has paid Rs 55 billion to the exporters.
Trade Development Authority (TDAP) Chairman SM Muneer said that the lower quantity of payment of sales tax refunds was also a solid reason for reduced Pakistani trade volume with other countries as well as lesser quantum of Pakistani exports during the current fiscal year. The country’s exports have reduced by 12 percent during the current fiscal year 2016-17.
While expressing reservations over running the affairs of the EXIM bank on ad-hoc basis, the committee sought performance record of the bank along with incentives and concessions offered to the bank by the government.
Senate Commerce committee met here with Shibli Faraz in the chair to discuss the issues pertaining to falling exports along with the recently offered export enhancement package by the Prime Minister as well as the performance of Trade Development Authority (TDAP) in increasing national exports.
On the onset of the meeting, Chairman directed the Ministry of Commerce (MoC) to devise national strategy on enhancing the exports keeping the ground realities of emerging and changing international trade trends in view. The State Bank of Pakistan has provided Rs 7 billion to EXIM Bank, but the Chairman committee questioned into the reasons behind the facts for running the affairs of EXIM bank on ad-hoc basis.
He observed that new international markets should be searched for Pakistani products by deploying and appointing the concerned officials at Pakistani trade missions abroad. The formation of TDAP board must be completed by next month as well as flaws in the TDAP act must be removed though appropriate amendments.
The committee directed MoC to apprise the House about strategy devised by the ministry for the protection of local industry as well as to enhance national exports under the China Pakistan Economic Corridor (CPEC) projects.
Joint Secretary MoC Kausar Zedi told committee that China had provided special incentives to Pakistani banking industry and Pakistan would benefit almost $ 4 to 6 billion out of these incentives because Habib Bank Limited was the first Asian bank which had been allowed to open branch in China.
DG Trade Ministry of Commerce Dr. Latif said that export enhancement package announced by Prime Minister would be phased; first phase from January 30 to June 30, 2017 while second phase from July 2017 to June 30, 2018.
