Chief Executive Officer (CEO) of Trade Development Authority (TDAP) S M Muneer said, "The Pakistani rupee's depreciation is essential to increase the exports which would generate more employment and cause development of industries and exports,." We should develop strongest trade ties with neighbouring country of Iran and we should send maximum number of delegations because Iran wants to strengthen bilateral trade with Pakistan.
Delivering his speech at a reception hosted by Multan Chamber of Commerce and industry (MCCI) in honour of the United Businessmen Group including newly elected President of FPCCI Abdul Rauf Alam, S M Naseer Chairman of UBG, S M Muneer said that tax refunds of more than Rs 250 billion are pending, which has left the small export units paralysed, and increased the cost of doing business across the board. Of that, Rs 250 billion, Rs 8 billion is of Customs rebate, about Rs 115 billion is in sales taxes, Rs 80 billion is in income tax and about the same amount is pending under SBP's export incentive schemes. If they clear these refunds, our exports will surely increase by $4 to $5 billion every year. The biggest reform at TDAP is that corruption has been brought to zero. Second, the culture of unnecessary delays has been weeded out. There was a time when TDAP didn't use to respond for more than 12 months; today our staff and officials have to respond within three days. I have given TDAP a whole new corporate culture with the instruction that they have to serve the business community. Moreover, I have rolled out an open door policy. Today, no chamber can complain about TDAP being unresponsive. Now I meet with every Director General every fortnight; if any issue gets delayed by more than a week, then he looks at the matter personally.
However, the biggest issue we are facing is that our workforce is very small and our budget was cut from Rs 2 billion to Rs 1.30 billion in spite of this fact that prices of everything are going high. Rules for new hiring have been made, but the Ministry of Finance has not given the go-ahead as yet due to shortage of funds. He admitted that our exports have fallen down by 14 percent. Unfortunately the global recession has come down hard on Pakistan's economy; Pakistan's exports have come down nearly 14 percent, India's and China's exports have also fallen by 10 and 8-9 percent respectively, whereas that of Korea and Japan have dropped by 7 percent and 14 percent respectively.
Fiscal year 2016 will be a bad year for Pakistan and many other countries in terms of exports. Currently, TDAP's focus is on increasing exports regardless of howsoever, it comes from - whether it is Kinnow, rice, mango, leather, carpet. I am willing to send export delegations of any industry that shows and proves export potential. Rupees 28 billion is lying unused in the Export Development Fund, because the ministry of finance is not releasing those funds. It releases Rs1-2 billion at the most in a year. If this continues, TDAP would have to consider cutting down on marketing delegations abroad.
He said that red-tapism was main hurdle in our progress. SM Muneer said that Eurobon experiment was very bitter because these were sold on 8.25 % markup which is unjust while whole world was doing business on 1,.25 or 1.5 percent .Earlier MCCI President Fareed Mughis Sheikh reiterated his demand to establish an expo plus export display centre in Multan to promote the business and skill of people of Southern Punjab.Sufficient funds be released from Export Development fund for the construction of building and furniture. A mega exhibition be held at Multan with the collaboration of USAID and NPO. Quota for southern Punjab be allocated in international fairs and exhibitions. Balance must be maintained in exports and imports because our trade deficit increased to $13.636 billion.
The reception was also attended by Nawab Shehzad Ali Khan Chairman of Pakistan Cotton Ginners Association(PCGA), Chairman of All Pakistan Bedsheet & Upholstry Manufacturers Association (APBUMA), Mian Tanvir Sheikh Ex-President of FPCCI, Khawaja Muhammad Yousaf and Khawaja Muihammad Abdullah Ex-chairman of Pakistan Tanners Association, Atta Shafi Tanvir Sheikh Senior Vice President,Tariq Khan, Vice President, Chairperson of Women Chamber of Commerce & Industry,Razia Shah,Masooma Sibtain.
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