Govt to set up EXIM Bank: minister

KARACHI: Government will establish export-import bank to promote the country’s foreign trade and an announcement is likely to be made in the forthcoming federal budget in June, a government minister said on Saturday.
Engineer Khurram Dastgir Khan, federal minister for commerce the government will further facilitate exporters and support duty free import of high technological machinery. The government is also mulling to cut the export re-finance rate by two percent to four percent,” Khan said at the Pakistan Auto Parts Show (PAPS) 2015. The six percent rate was implemented from February 1.
“If exports will increase by 10 percent from the previous year, the government will give three percent relaxation in utilities bills to exporters,” he added.
Khan said the government will bring a balance auto policy in the coming budget and ensure that interest of all the stakeholders is safeguarded.
“New auto mobile sector’s entrants will be encouraged to bring more competition and increase choices for the consumers,” the minister said.
PAPS showcased the most sophisticated and advanced auto parts manufacturing capabilities in Pakistan.
Khan said the government, led by Nawaz Sharif, is trying its best to ensure ease in doing businesses and make Pakistani industries more competitive especially in the region.
He added that automobile assemblers will be supported through export development fund (EDF) and Chairman Pakistan Association of Automotive Parts Accessories Manufacturers (PAAPAM) would be included on the EDF board for 2016.
The minister said the government is doing all efforts to increase investment in the country and also coordinating with all the ministries and government departments, including the Federal Board of Revenue to ensure pro-exporters and -importers policies.
Amir Allahwala, former chairman of PAAPAM said PAPS will work as stimulator for the industry and will help in fetching export business.
Allahwala said delegation from 13 countries has arrived and showed interest in the trade with Pakistan. Some of the countries are Algeria, Morocco, Korea, Iraq, Japan and Taiwan.
He added that there only 40 auto mobile manufacturing countries in the world and Pakistan is ranked 32nd in this list.
The industry leader said local auto vendors manufacture 70 percent of all the components used in locally-assembled automobiles.
Despite in low volumes, manufacturing of hi-tech parts, such as engines, transmissions starter motors, alternators, water pumps, oil pumps and wheel hubs has started in Pakistan, he added.
Allahwala further said that over 30 percent of a vehicle price is contributed to the government as sales tax, corporate tax, and import duty on imported parts. This industry is one of the top three contributors to government revenues and also providing direct and indirect employment to three million people.
PAAPAM demanded of the government to ensure stable policy, improved law and order and better economic management and reduce interest rates.
The association said there were seven local auto assemblers back in 2007. However, policy relaxation on import of used cars forced four local assemblers, including Nissan, Hyundai, Adam Motor and Chevrolet to close down.
SM Muneer, Chairman Trade Development Authority of Pakistan, Siddique Misri, Chairman PAAPAM and Wassem Vohra, Vice President Federation of Pakistan Chambers of Commerce and Industry also spoke on the occasion.