Pakistan Tanners Association has urged the government and the policy makers to discuss the issue of withdrawal of zero-rated regime with real stakeholders and not with people having no grassroots knowledge of things. The opinion of outspoken businessmen without vested interested is needed to save our country. PTA Chairman Agha Saiddain stated this in a letter written to Prime Minister Imran Khan said that the withdrawal of zero rating of five export sectors is neither in the interest of Pakistan nor the export sector. The decision of rescinding of SRO 1125 is short sighted and pregnant with serious repercussions which policy makers have unfortunately not assessed well.
He said that the well experienced and groomed businessmen feel our exports will drop from 25 percent to 30 percent if zero rating is withdrawn. This amounts to about US$6 billion. With some positive measures taken by the Ministry of Commerce, the net drop in exports would be US$2 billion to $3 billion, he added.
He said that the IMF would provide financial assistance of US $6 billion for three years meaning that US $2 billion per annum. The IMF conditionalties will cause drop in exports by US $2 billion to $3 billion. By this way Pakistan gains nothing but further chaos and economic disaster, he maintained.
PTA Chairman was of the view that the government wants to use liquidity of exporters as interest free money and exporters will be paying interest on stuck up refunds. This is also very short sighted thinking.
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