'New export financing scheme against exporters interests'

Local business community rejects the new export financing scheme, which is against the interests of the exporters and it only provides shelter to the financial institutions. These observations were made during a meeting of joint trade bodies' forum Sialkot held here on Tuesday night.
Representatives of the trade bodied emphasised on Governor State Bank of Pakistan (SBP) to safeguard the interests of the exporters and businessmen, adding that the existing policies of SBP were providing 'unjust protection' to the banks and financial institutions and as a result, the profits of banks were inflaming gigantically, whereas the consumers and businessmen were suffering dearly at the hands of this organised banking 'mafia'.
They urged SBP to play its due role of regulator of monetary and fiscal policies and safeguarding the interests of the banks and also provide support to the business and consumers.
The business community of Sialkot demanded that the exporters should be compensated in exports financing and a discount of 3 percent should be awarded to them in export financing as it was currently being provided to textile spinning sector. Furthermore, Governor SBP should visit Sialkot immediately in order to discuss and settle the genuine concerns of the business community, they asked.
They were of the view that Prime Minister of Pakistan was taking revolutionary and commendable steps for enhancing country's exports and to nurture the export culture of the country. However, they observed, the Federal Board of Revenue was not working with same zeal and vision and was creating problems for the exporters by issuing complex and confusing SROs.
They said that the latest example is that FBR has reduced drawback on medical instrument exports from 1.08 percent to 0.75 percent despite the fact the industry was facing a multitude of problems and the production cost was rising excessively day-by-day.
They also demanded that FBR should refrain from issuing confusing SROs and adopt export supportive policies that could supplement the national export cause. The Export Development Fund (EDF) is being collected from the exporters for betterment and up-gradation of the exporters and exports. However, there is a need to realign the whole process so that all the business sectors of the country could maximum benefits from EDF, they said.
It is suggested in the meeting that EDF collected from a sector should only be utilised on betterment of that particular sector, in consultation with the concerned trade organisation. The chairmen of surgical association, sports goods association and senior vice president Sialkot Chamber of Commerce and Industry (SCCI) and others attended the meeting.