Patron In-Chief Korangi Association of Trade and Industry (Kati) S M Muneer, Chairman Mohammad Zubair Chhaya, President All Karachi Industrial Alliance Mian Zahid Hussain and Vice Chairmen Najmul Arfeen and Niaz Ahmed said in a statement that decision of withdrawal of any incentive on export sector would adversely affect exports at a time when huge amount of sales tax refunds were already stuck up with the FBR and exporters are facing liquidity crunch.
"Instead of pacifying the exports sector at this juncture when the industries are closing down and massive unemployment is haunting the nation, the government is further trying to squeeze business community," Zubair Chhaya said, adding it's high time to reverse the anti-export and anti-industry policies by the government and refrain from any adverse action.
The government might study export policies of India, China and Bangladesh where exporters were facilitated through export friendly policies, he said, advising that the FBR should announce export-friendly policies instead of creating difficulties for the industry. "This huge trade gap has resulted into inflation and devaluation of Pak Rupee. If zero-rating from five sectors ie textile, leather, carpets, sports and surgical is withdrawn, it will adversely affect our exports," he said.
He agreed to the stance by leather sector which gave an example of leather sector in South Asia where China, India and Bangladesh recorded growth rate of 47 percent, 40 percent, and 71 percent, respectively in last five years, whereas in Pakistan exports of leather sector declined by 14 percent due to various reasons.-PR