FPCCI holds inter-active session on Export Package

The President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Mr. Zubair F. Tufail organized an inter-active session on the export package of Rs. 180 billion recently announced by the Prime Minister. The session was attended by leading businessmen and representatives of associations. In his address, Mr. Zubair F. Tufail President FPCCI briefly explained the outcomes of his meetings with the Prime Minister and Finance Minister and informed that he has requested to the Prime Minister for some package for the rice and all exports oriented sub-sectors to exploits their maximum exports potentials.

He also appreciated the efforts of Mr. S. M. Muneer in bringing the package for exporters and stated that this package is basically for the five zero rated sectors of exports. He also invited the budget proposals from the Associations to be included in the Federal Budget Proposals 2017-18.  He assured the members associations that their problems will be take up in the next meetings with the Prime Minister, Finance Minister and Commerce Minister.

During the session, the representatives of Fruits & Vegetables exporters requested for the exemption of withholding tax of 1.25 percent and duty free imports of chemicals for exports of value added fruits and vegetables. They also insisted early verification of machinery from Engineering Development Board as it takes at least six month. They also demanded to ban the imports of injurious and non-halal juices. The representatives of textiles associations requested for level playing field as the cost of production particularly the prices of utilities are very high in Pakistan as compared to Regional countries like Vietnam, India, Bangladesh, Sri Lanka etc. which makes Pakistani goods uncompetitive in 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 Rs. of textiles refunds are still pending.  The stakeholders also stated that the recent package will only benefits the yarn sector because the price of yarn has increased by 12 percent while the bedwear and towel related industries will be highly affected with the package. Furthermore, the commercial exporters may also be included in the package, presently 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 like to increase the share of value addition of 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 exporters of rice also requested for the five percent DLTL as they are facing high input cost in term of utility prices.

Earlier, Mr. Irfan Sarwana Vice President FPCCI briefly 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 month and then by 10 percent in the next year. He added that there would be no condition during first six months of the package, but later on duty draw back would be linked to increase in exports. He further stated that the package gives larger incentives to textile sector, which is the backbone of Pakistan economy; contributed 8 percent in GDP and more than 50 percent in exports of Pakistan.

The session was attended by Mr. Ishtiaq Baig and Mr. Saquib Fayyaz Magoon, Vice Presidents FPCCI and Other prominent businessmen.

Posted in Uncategorized.