FAISALABAD. Government has decided in principal to introduce zero-rating regime for exports form next financial year, said Federal Minister for Commerce Engineer Khurram Dastagir. He was addressing a meeting in Faisalabad Chamber of Commerce and Industry (FCCI) here.
He said that the present government has to face multifarious and multi dimensional challenges. However, with its sincere efforts positive improvements could be witnessed in energy sector. Similarly the hydra headed monster of terrorism has also been nailed down. He said that sixteen hour long load shedding of electricity has been reduced to only four hours and efforts are now being made to give further relief to the people of Pakistan.
He said that initially a proposal was under consideration to allow zero rating to only five export sectors but now his ministry was contemplating to extend it to the nine vale coed sectors. He said that we have done a lot but more has to be done to put the country on the road to progress and prosperity.
He claimed that PML-N Government has earned political stability with its 1000 days and as soon as the economic situation improves more relief will be doled out to the business community.
Regarding refund claims, he said that this issue will be eliminated with the introduction of zero-rating regime for export sectors and then all efforts would be diverted to the payment of pending refund claims.
Regarding exports, the federal minister said that the GSP-Plus status is one of the biggest facility earned by this government which has played an instrumental role in enhancing 33 percent increase in our exports to the EU countries. He said that unprecedented boost has been recorded in the export of readymade garments, leather products and home textiles and hence this apprehension should be scratched our of our minds once for all that Pakistan has failed to harvest the benefits of GSP Plus and this facility will be withdrawn ahead of its scheduled period.
He categorically announced that this facility will continue up toDecember 31, 2023 and hence, Pakistani exporters have clear 8 years to further explore new markets and export new products to the EU countries.
He said that Pakistan is the first country that has established a separate organization to monitor the implementation on 27 UN conventions and protocols and hence there is no chance that this facility of GSP Plus will be eliminated ahead of its due date.
Regarding poor performance of commercial councilors appointed abroad, he said that ministry of commerce has summoned back all these counselors. New commercial counselors have been recruited purely on merit. They have just visited Sialkot and Karachi chambers and are expected to visit Faisalabad very soon. The minister said that these commercial counselors would remain in touch with the exporters and provide them necessary facilities up to their satisfaction. He further said that a strategy has also been carved out to monitor their performance regularly under which the commerce secretary will personally review their performance through IT on daily basis.
The federal commerce minister said that export refinance rate has been reduced to the minimum (3.5) percent. “Similarly the Long Term Financing (LTF) is also available at 5.5 percent”, he said and added that despite of all these positive indicators, the stagnation in industrial growth was due to the high cost of doing business in this region. “It was in this context that government has reduced the electricity tariff while efforts are also being made to further trim it”, he said and also endorsed the demand that the DISCOs with good recovery and minimum line losses must be compensated with additional incentives.
He said that commerce ministry was also reviewing the duty structure on raw material so that its proposals and recommendations included in the next federal budget.
Quoting about prices of various domestic crops, he said that the commerce ministry was also reviewing the entire incentive structure so that the prices of various commodities could be brought up to the international level.
Responding to a question about EXPO center, he assured that as soon as the land was provided, work for its construction will be started. Regarding Free Trade Agreement (FTA), he said that Pakistani government was negotiating with Thailand and Turkey at the moment. However, we should fully discuss the pros and cons of such bilateral agreement as these are reciprocal and both countries have to open their markets for each other. He told that international sanctions on Iran have been lifted and now commerce ministry was exploring to enhance our trade to this neighboring country. In this connection business community of Faisalabad should also give positive proposals so that we could take advantage of this new market.
The minister said that a road shows will be organized in the month of May this year to promote trade to the Central Asian countries. Similarly made in Pakistan exhibitions would also be held in different countries of this region.
Earlier, Rana Afzal MNA, Mian Abdul Manan MNA, Chaudhary Muhammad Nawaz President, Syed Zia Alamdar Hussain SVC, Jameel Ahemd VC FCCI also addressed the meeting and pinpointed the problems confronted by the business community of Faisalabad.
Later, Sheikh Muhammad Saeed Central Chairman All Pakistan Textile Processing Mills Association presented FCCI shield to Engineer Khurram Dastagir federal minister for commerce.
