The steering committee on freight subsidy has recommended to the Ministry of Commerce (MoC) to extend the deadline for freight subsidy, which expires on June 30, may be extended for a year.
The committee, which is headed by the Chairman, Export Promotion Bureau (EPB), comprises representatives, among others, from Customs, State Bank, Air Cargo Agents and exporters.
The committee was formed to review the problem of delay in payment of 25 percent freight subsidy to the exporters held up since July last. Later, a technical committee was appointed to discuss the auditors' objections on subsidy claims to pave the way for payment.
The technical committee discussed 29 objections on subsidy claims, and resolved objections on 20 cases.
The stage is now set to start payment on claims from July 1. There is an estimated 12,000 freight subsidy claims, involving an amount of Rs 500 million pending with the EPB.
During the meeting, the steering committee decided that the exporters, claiming subsidy on the IATA approved rates instead of actual payment, would be blacklisted.
All exporters have been advised to affix a stamp, mentioning freight subsidy on shipping bills presented to the Customs.
The freight subsidy at the rate of 25 percent is admissible on the export of fruits and vegetable, new products to the new markets or to markets having fewer exports from Pakistan.