On Friday, Chairman of National Business Group Pakistan, President Pakistan Businessmen and Intellectuals Forum, and All Karachi Industrial Alliance and Former Provincial Minister Mian Zahid Hussain said the surgical instruments industry is one of the key SME export sectors that should be promoted.
This sector contributes almost 435 million dollars in exports to 140 countries, engages up to one hundred and fifty thousand workers in direct employment and creates indirect employment for around four hundred thousand workers who should not be subjected to rigorous taxation, he said.
Mian Zahid Hussain said that exports of Surgical Instruments have been increasing, but now it may come down due to changes in the FBP policy.
Talking to the business community, the veteran business leader said that the concerned SRO had been amended and refund of duty drawback/rebate on the export of surgical instruments is reduced from 4.86% to 1.58%, which created panic in the entire surgical instruments industry as they will be unable to fulfil orders, he informed.
Pakistan’s surgical industry is a cottage, labour intensive, vendor-based and export-oriented sector. He added that it is a cluster of small entrepreneurs and is earning the highest foreign exchange in the light engineering sector of Pakistan.
This industry is struggling to survive due to various challenges, including the high price of raw materials, changing technologies, new international standards and intense competition in export markets by India, China and Vietnam; therefore, it should be patronised.
Government should provide funds for research and development facilities and modernise them before it is too late, he warned.
He said that the decision of FBR for a reduction in a refund of duty drawback/rebate will hamper exports of this sector and may result in the lost export market.
Authorities should not take decisions that can prove the last nail in the coffin of SMEs and should support export-oriented industries, especially the world’s largest centre of surgical instrument manufacturing which is exporting almost 50% of its production to Europe and 25% to the USA, he said.