Govt to cut import duties on industrial inputs from January

LAHORE: Import duties on industrial inputs will be slashed by six percent from January 1 to spur industrial production and encourage export-oriented sector, commerce adviser said on Saturday.

Adviser to the Prime Minister on Commerce and Investment Razak Dawood said the duty reduction will benefit the industry.

“I am the representative of industrialists in Islamabad and I will help in solving all their genuine problems,” Dawood said during a meeting with industrialists and businesspeople.

Commerce adviser sought feedbacks from industrialists for long-term planning of industrialisation.

The government introduced a new tariff policy to rationalise duties on raw materials essential for manufacturing in the country due to unavailability of local substitutes.

The tariff rationalisation had started since the government took the helm of affairs two years back. However, the government continued to discourage imports to reduce widening current account deficit as part of economic stabilisation measures. Since manufacturing relies much on raw material imports, custom duties are being reduced to revive growth.

Dawood said business community should take benefit of the government’s temporary economic refinance facility for importing machinery and the scheme of the federal government worth Rs100 billion.

The central bank announced the refinancing scheme with concessionary interest rates to buoy businesses faced unprecedented liquidity crunch due to monthslong lockdown associated with coronavirus. The scheme will expire on March 31 next year.

Problems facing industrialists, industrialisation and other issues were discussed during the meeting.

Provincial Minister for Industries and Trade Aslam Iqbal gave a detailed briefing on promotion of industrialisation in Punjab and government’s future strategy.

Iqbal said mapping has been done in collaboration with urban unit for setting up new industries in the province. New economic hubs will also be made in the province.

“For the first time in the history of Punjab, four special economic zones are being set up in the private sector,” he said. New industrial estates are also being set up throughout the Punjab.

Pakistan planned special economic zones under China-funded corridor projects. Initially, nine special economic zones are planned across the country, following investments in infrastructure and energy projects.

The provincial minister said a new cement plant will be set up in the province. The new cement plant will bring in Rs6 billion of investment.

The minister further said two million children have been enrolled in technical education and vocational training authority institutions, he added.