The government should impose a complete ban on the export of wet blue split leather, as the local industry is facing losses of millions of dollars. This stated by President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Tanvir Ahmed Sheikh, addressing a press conference here on Saturday.
Referring to the under-invoicing threat to the industry, he said the FPCCI had sent proposals for 2007-08 trade policy, demanding steps to stop this menace. He said in the absence of any check, the under-invoicing was increasing, which was not only a threat to the local leather garment industry, but was causing huge losses to the national exchequer.
He demanded that exports should be brought to the level of zero-rate to boost the country''s exports to world, besides arrest the trade deficit on a permanent basis.
Some of the commodities were still not allowed to enter the European and American markets, which was also one of the reasons behind the trade deficit, he said. Tanvir Sheikh said the government should negotiate with the US and European governments to seek access into these larger world markets.
About the ban on the import of some commodities, Tanvir said that luxury items should also be included in this list, which caused huge losses to local manufacturers of the same commodity. He observed that maximum imports of edible and petroleum products had been made during the last fiscal year, and suggested that edible oil imports should be replaced with its seeds imports, which would help generate employment, besides decreasing its import.
BT cotton production would help the local textile industry to relinquish its import, which was presently on the rise, as a result of increasing cost of production, he said, and urged the government to evolve a compact strategy to expand its cultivation across the country.
About the commodity brand introduction in the world market, he stressed that government, along with the private sector, should initiate brand venturing of local commodities to maximise the country''s exports.
He suggested that private exporters should focus on exploring new markets in Central Asia and African continent, besides markets known for "Halal" commodities and expand their export share there greatly.
The FPCCI President demanded freight subsidy on exports, which would help scale down financial burden on the exporters, and added that five percent research and development (R & D) assistance should also be given to the spinning sector to boost its export.
In the export policy proposals, he highlighted the need of support to the textile sector frequently, saying that despite being backbone of the country''s exports, this sector had been left in doldrums. He said that textile exports share was 65 percent of the total country''s exports. Further unfolding the proposals, he demanded that manufacturers, with over 60 percent export of their production, should be exempted from sales tax on utilities.
He also demanded withdrawal of 6.5 percent duty on polyester staple fibre and six percent freight subsidy on the import of polyester fibre. In the context of import policy, he demanded withdrawal of five percent duty on the import of the garment machinery. Other demand, he made was about the reduction in gas, electricity charges, income tax, sales tax etc.
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