Zero-rated ST regime from July 1: 33 percent increase in exports after grant of GSP Plus status: Dastgir

Commerce Minister Khurram Dastgir has said that 33 percent increase has been made in Pakistan's exports after getting GSP Plus status and the government is going to put in place a zero-rated sales tax regime for export sector from July 1. The commerce minister, while responding to a calling attention notice moved by PPP in the National Assembly regarding decline in textile exports of Pakistan during the first seven months of the current fiscal year, said that the export of textile sector has decreased due to low price of cotton at international market. He said law of new technology and research on seed is also another reason behind decline of textile export.
"Pakistan's textile export only depends on the international market. Unfortunately, the price of cotton has decreased to 99 cents at international market. Pakistan faced a decline of $100.42 (20 percent) decline in export of cotton in this year," the minister said. "Pakistan has tremendous success in GSP Plus. Pakistan's export stood at 2.92 billion euros in 2013 and in 2015 it is 4.18 billion euros to European countries. But when we convert it into dollars, euro currency has declined 21 percent, and $300 million decline is purely due to currency movement," he said.
While responding to a supplementary question, he said that the Finance Minister already has announced to refund amount of those exporters whose amount is less than Rs 500,000 within one month. Later, the opposition member also raised the issue of Euro bond in the House and claimed that the government has given favours to blue eyed of the Prime Minister and Finance Minster in purchasing these bonds at high rate. Dr Azra Fazal Pechuho of Pakistan People's Party (PPP) claimed that some blue eyed have whitened their black money by purchasing Euro bond. She said that money was transferred to aboard for purchasing bonds.
"The Government should expose the names of concern people and how they transfer their money aboard. These bonds are bought by the people of government at high rate," she said. Shazia Marri of PPP said the government has planned to increase the burden by imposing double taxation on gas consumers.
She said the government has asked gas companies (SNGPL, SSGCL) to borrow Rs 101 billion at a rate of 18 percent from commercial banks for the funds of Gas Infrastructure Development Cess (GIDC). She said consumers who are already paying taxes on gas, will be forced to contribute another Rs 101 billion to help gas companies repay loans along with mark-up.
On a point of order raised by different members, Minister of State for Parliamentary Affairs Shaikh Aftab Ahmad informed the House that the government has decided to launch Pakistan Airways, as alternative of PIA, and as an additional air travel facility for the passengers. He said employees in new Pakistan Airways will be appointed on contract basis and planes will be taken on dry lease.
The minister said that the new Airways will create an environment of competition. The National Assembly also passed "The National University of Sciences and Technology (Amendment) Bill, 2016" with majority. The opposition members also strongly raised objections on the qualification and experience on the appointments in the university. They claimed that the government wants to give benefit to individual as it did not clear mention about qualification and experience in the law for appointment in the university.