Karachi, July 03, 2019: Engr. Daroo Khan Achakzai, President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) appreciated the Government decision for releasing exporters’ refunds pertaining to Drawback of Local Taxes and Levies (DLTL) amounting to Rs. 35 billion which were a long demand of FPCCI.
He indicated that the payment of refunds to exporters will resolve the problem of liquidity crunch and ultimately contribute to exports of Pakistan.
In a statement, the President FPCCI stated that the government should provide the level playing field to the business community as the continuous rising of utility prices, high-interest rate and transportation cost makes our export uncompetitive in the international market.
He underlined the need to restore the zero-rated regimes for five exportable sectors under SRO 1125, which contribute 70 percent in exports and significantly provide employment to the skilled and unskilled labor force. The withdrawal of zero-rated facility not only affects the large scale manufacturing, but it also increases the cost of doing business of small industries and opens the door of smuggling which is unaffordable in the present economic environment. He suggested the government to facilitate the industrialization in Pakistan particularly the agro-based and value-added industries for the enhancement of exports.
He lauded the efforts of Prime Minister Imran Khan and Abdul Razzaq Dawood, Advisor to Prime Minister on Commerce and Textile for taking a keen interest in resolving the issues of business community and enhancement of economic activities in Pakistan.
Apart from DLTL, there are huge pending exporters refunds related to Sales tax and custom duty drawbacks amounting to Rs. 300 billion which should also be released as soon as possible in order to increase domestic investment and further enhancement of exports.