Pakistan Sports Goods Manufacturers and Exporters Association has urged the government to take effective steps for reducing cost of production, and also provide research and development support to help them cope with the effects of global economic slowdown.
The association in its proposals for the Trade policy 2009-2010 requested the government to provide freight subsidy to exporters of upcountry on transportation charges up to Karachi to bring them at par with Karachi based exporters. The sports goods manufacturers and exporters expressed the hope that the prices of petrochemical products will go down.
They also sought reduction in airfreight charges and fares by the PIA to facilitate exporters. They said the 15 percent sales tax, being charged on letters and parcels sent to foreign buyers through courier companies, was a financial burden on exporters and a hurdle in the way of boosting exports, and it needed to be withdrawn.
The association complained that Pakistan's commercial offices abroad did not have updated information regarding exports to their respective country of appointment, and no assistance was provided to business community during their foreign visits
It suggested that commercial counsellors should visit fairs arranged by local authorities or commercial sections of other countries. TDAP should also be advised to arrange trade fairs of the same nature. Moreover, foreign buyers should be provided every possible assistance regarding business visas.
They urged the TDAP to enhance subsidy from 60:40 ratio to 70:30 ratio on trade fairs and exhibitions in view of the global economic slowdown. The sports goods exporters said the subsidy of US $100 per day, being offered to the Pakistani trade delegates for overseas accommodation, should be increased to 200 Euro.
The association observed that the volume of exports has been reduced up to 30 percent due to global recession, and in order to arrest this situation, it urged the government to provide research and development support to sports goods sector.
It observed that the exports of Pakistani products to Africa, Central and South America, etc could be increased enormously after signing Preferential Trade Agreements (PTAs). And where it is not possible, the government should at least negotiate to lower tariffs. It requested to suspend export development surcharges on all sports goods for at least three years in order to offer relief to exporters.
The association proposed that all export processing units should be considered as working in Export Processing Zone (EPZ), and thus exempted from all sorts of import and other duties. This facility should be provided to all Sialkot based exporters.
The calculation of the rates of duty drawbacks on various export items should be worked out with the consultation of trade bodies on the basis of data evidence produced by them, the association suggested. As regards to reduction in oil prices in international market, it is requested that relief should be provided to the people, and the oil prices should be reduced from 2 to 40 percent per year. This step will help the industry and generate employment opportunities. The association also suggested that all Sialkot bound courier packages/ parcels must be assessed at Sialkot Customs rather than at Karachi for early clearance.
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