The sources said members of Pakistan Electronic Manufacturers Association (PEMA) came unprepared. They presented 'facts' that did not come together to make a pertinent case that could convince Commerce Ministry and Federal Board of Revenue (FBR) to support them in export incentives. The PEMA members were asked to share their cost factors stemming from government levies and a higher cost of production stemming from governance-related issues. The committee could then consider how to mitigate the effect of inefficiencies in the system to support export price for the PEMA members.
Director General Trade, Commerce Division, Muhammad Ashraf shared with the committee that in the present economic situation any kind of rebate was out of the question. "Rebate is against the spirit of World Trade Organisation (WTO) of which Pakistan is a signatory," he added. The PEMA members were also visibly disturbed at the measures taken by FBR that had dried up their market.
Razak Dowood assured them that their genuine problems would be addressed and requested PEMA members to share the issues with him in writing. Next meeting will be held after two weeks in which PEMRA members are supposed to provide a detailed working to back their proposal for support from government to promote their exports.
One of the participants told this newspaper that PEMA members are also facing problems in sale of their products in the local market as their dealers are not ready to give their CNICs. PEMA members want zero rating in Firth Schedule but could not present their case properly as they are disturbed due to increase in Additional Customs Duty (ACD).