FPCCI seeks incentives for export-oriented sectors

KARACHI: The Federation of Pakistan Chambers of Commerce and Industry (FPCCI) organised an interactive session on the recently announced export package worth Rs180 billion, a statement said on Friday.

Zubair F Tufail, president of the FPCCI, briefly explained the outcomes of his meetings with the prime minister and finance minister and said that he has requested the prime minister for an incentive package for rice and all export-oriented sub-sectors to exploit their maximum potentials.

He also appreciated the efforts of S M Muneer in bringing the package for exporters and said that this package is basically for the five zero-rated export sectors.

He also invited budget proposals from the associations to be included in the Federal Budget 2017/18.

Tufail assured the member associations that their problems will be taken up in the next meetings with the prime minister, finance minister and commerce minister.

During the session, the fruits and vegetable exporters requested for exemption of withholding tax of 1.25 percent and duty-free imports of chemicals for value-added fruits and vegetables exports.

They also insisted on the early verification of machinery from the Engineering Development Board, as it takes at least six months.

The exporters also demanded ban on the imports of injurious and non-halal juices. The representatives of textile associations requested for level-playing field, as the cost of production, particularly prices of utilities, are very high in Pakistan as compared to regional countries such as Vietnam, India, Bangladesh, Sri Lanka, etc, which makes Pakistani goods uncompetitive in the international market.

They also demanded zero-rated imports of textile machinery and spare parts.

Moreover, they urged early payments of sales tax refunds, as millions of rupees in textile refunds are still pending. The stakeholders also said the recent package will only benefit the yarn sector because its price has increased 12 percent, while the bed-wear and towel-related industries will be highly affected with the package.

Further, commercial exporters may also be included in the package, as currently the package is only for the manufacture-cum-exporters.

They also requested for the implementation of textile policy (2014/19), wherein several incentives were announced such as to increase the share of value-addition in products, reduction in export refinance rate (EFS) and long-term financing facility (LTFF), subsidy on long-term loans and development and special duty drawbacks, etc. The rice exporters requested for the five percent DLTL, as they are facing high input cost in terms of utility prices.

Earlier, Irfan Sarwana, vice president of the FPCCI, explained the salient features of the package and said that the exporters will be liable to increase exports by five percent in the first six months and then by 10 percent in the next year.

There would be no condition during the first six months of the package, but later on duty drawback would be linked to an increase in exports, he added.

Sarwana also said that the package gives larger incentives to the textile sector, which is the backbone of the economy; contributing eight percent in GDP and more than 50 percent in exports of Pakistan.

The session was also attended by Ishtiaq Baig and Saquib Fayyaz Magoon, vice presidents of the FPCCI and other prominent businessmen.