FPCCI concerned reported withdrawal of zero rated facility

KARACHI: President, Federation of Pakistan Chambers  of Commerce and Industry, Engr. Daroo Khan Achakzai, Patron-in-Chief  of United Business Group in FPCCI, S.M.Muneer and other senior leaders have expressed their concern over the reports about withdrawal of  zero-rated facility in the forthcoming annual budget.

The facility was provided to five key export sectors that is  value-added textile products, leather goods, carpets, surgical  instruments and sports goods this helped increased the exports of the country. These five sectors contribute 70 percent in exports of Pakistan, contribute significantly in earning foreign exchange and providing employment to skilled and unskilled labour force, said a press release on Wednesday.

They also maintained that the refunds claims of exporters amounting  to Rs 300 billion were already pending with Federal Board of Revenue;  which had created liquidity crunch and hurdles to new investment. Due to uncertainty in economic environment, the investors were reluctant to make investment in the country. Moreover, the devaluation of Pakistan Rupees  by more than 30 percent in last one year did not impact positively on  the enhancement of exports.

The withdrawal of zero-rated facility would increase the cost of  doing business because of 17 percent sales tax and high utility cost,  and that Pakistan's exports were already facing a tough competition in international market due to many facilities given by the regional  countries to their exporters, they added.

They suggested that the government should facilitate the industrialization particularly the agro-based and value-added industries  for the enhancement of exports.