ISLAMABAD: The Federation of Pakistan Chamber of Commerce and Industry (FPCCI) on Sunday said that external trade can be revived if all the sectors are dealt on equal terms and cumbersome rules and regulations are made reasonable. The government announces incentives for the export sector, but these are seldom implemented; therefore this important segment of the economy keeps reeling under problems.
FPCCI Regional Committee on Industries Chairman Atif Ikram Sheikh said that last year, the government announced a package worth Rs180 billion in which incentives were offered for only five major sectors while the rest were ignored, which was seen as preferential treatment by some stakeholders.
He said that five sectors were given the facility of zero rating while the rest were ignored; the exporters dealing in these sectors do not get timely refunds which compromise their competitiveness.
Atif Ikram Sheikh said that the policy of holding back refunds has a negative impact as some sectors have stopped adding refunds in their calculation and they would only export something when it is profitable without refund.
Some of the sectors not claiming refund claims include pharmaceuticals, poultry, and bike manufacturers. A reason behind this trend is the differences between exporters and authorities on the way amount of the refund is calculated, he said.
If the sectors that are not claiming refunds are supported, they can enhance exports resulting in an improved job situation and foreign exchange earnings.
