To tide over coronavirus recessionary trend

ISLAMABAD: The government on Friday assured exporters of considering a package to release the stuck up refunds and subsidy to stimulate exports to offset the negative impact of Coronavrus in Pakistan.

Adviser to the Prime Minister on Finance and Revenue Dr. Abdul Hafeez Shaikh chaired a meeting here at the Finance Division with a delegation of exporters to discuss the various issues exporters are facing after the outbreak of Coronavirus and the evolving position of the global economies and its impact on the Pakistan's export sector.

The advisers to PM on Commerce and Textile and Austerity and Institutional Reforms were also present during the meeting. The senior officials of the FBR told the meeting that they have already released refunds Rs 9 billion in the ongoing month and it might go up to Rs 14 or 15 billion till the end of March 2020.

The release refunds, he said, would be expedited in the next month, they added. The delegation briefed Dr. Abdul Hafeez Shaikh that due to the outbreak of the corona virus pandemic the global economies have gone into a recessionary phase and the demand for their products especially apparel has reduced to a considerable level. The exports which had shown an improvement in the February and March will receive a setback in the coming months.

In view of the changing situation of the global trade they are facing problems with cash flow situation and need help and assistance from the government mainly in expediting the re-payments or refunds so that they could come out of this crisis and could resume their business as early as possible.

The delegation presented a list of proposals to the Adviser Finance to help improve their liquidity position and to run their businesses in the current situation when they are not expecting further orders and faster recoveries from their international buyers. The delegation apprised the government not to lay off their daily wage staff in this difficult time.

Dr. Hafeez Shaikh, said “ the government has no desire to keep the money that belongs to the exporters even a day longer.” We shall do whatever possible to ease out the exporters and are committed to provide them relief with earlier repayments of export rebates, duty drawback and GST refunds, he said. Shaikh said that the GST refunds will be cleared within March and export rebates will be granted within April. He further directed secretary Finance and Chairperson FBR to hold meetings with the relevant stakeholders and provide relief to the export sector as much possible for the government.

He appreciated the decision taken by APTMA not to lay off their labour at the time of crisis and asked them to take care of their workers as the government is taking care of them.