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  • News Desk
  • Apr 27th, 2017
  • Comments Off on Government policies held responsible for export slide
The government policies have been held responsible for a decline in exports from $ 25 billion to $ 20 billion during the last four years and the decline is likely to accelerate if the government does not pay attention to basic causes. These concerns were expressed by representatives of textile and ginners associations here on Wednesday before the National Assembly Standing Committee on Finance, which met with Qaiser Ahmed Sheikh in the chair to discuss proposals for the next fiscal year's budget.

The representatives of textile sector identified high cost of LNG, non-treatment of package materials under zero-rated regime, non-clearance of refunds and government borrowing as major causes of decline in exports. The government borrows 90 per cent liquidity of banks and leaves nothing for the business, they added. The meeting was informed that these factors make Pakistani exporters unable to compete with other regional players. The representative of textile sector stated that Gas Infrastructure Development Cess (GIDC) is also a kind of local tax, which increases their cost of production.

The committee also supported the textile industry's proposals that the government should restructure loans of sick units so as to help their revival. The restructuring of loans to the sick industrial units of textile sector would earn $ 1 billion foreign exchange for the country and create five million jobs, according to industry's representatives. The textile industry wants restructuring of sick units for a period of 8-10 years. The meeting was also informed that exports in Bangladesh have increased from $ 24 billion to $ 34 billion whereas Pakistan's exports have fallen by $ 5 billion during the last four years and no sign of their improvement is in sight.

The chairman Federal Board of Revenue (FBR) has said the government is working to revamp regulatory duties system in consultation with all the stakeholders after various sectors stated that RD imposed by the government on various items of steel and papers was making them uncompetitive.

The committee recommended that representatives/stakeholders of plastic, printing & graphics and textile industries would be called in its next meeting to discuss the rehabilitation of value added textile industry structure. The committee directed the Ministry of Finance and Federal Board of Revenue (FBR) to make necessary preparations for the said meeting.

The committee discussed the proposals received from Karachi Chamber of Commerce & Industries and other chambers. The committee also discussed the proposals received from real estate stakeholders (PREIF & ABAD). Pakistan Cotton Ginners Associations (PCGA) and Pakistan Renewable Energy Association recommended that the same may be forwarded to FBR for necessary action.

The committee members have refused to endorse the report of Tax Reform Commission while Nafeesa Shah and Asad Umar took strong exception to taking up the recommendations of the report sent to the committee through a third-party, Karachi Chamber of Commerce, instead of coming thorough Ministry of Finance or FBR.

The chairman FBR said that a five-member implementation committee with two chartered accountants and three members of the FBR is being headed by Advisor to Prime Minister on Revenue Haroon Akhtar and the recommendations finalised by it would be implemented in the budget 2017-18.



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