ISLAMABAD: The Federal Board of Revenue (FBR) was reportedly grilled at a recent meeting of Special Investment Facilitation Council (SIFC) for facilitating misuse of Export Facilitation Scheme (EFS), well informed sources told Business Recorder.
This issue was raised by the representatives of business community of Karachi who represented the Sindh Industrial Estate (SITE) and All Pakistan Textile Mills Processing Association (APTMPA).
According to sources, the representatives of business community informed the meeting that FBR issues authorisations to those exporters who do not fulfil the criteria prescribed in the Statutory Regulatory Order (SRO) and admit that this is being misused.
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Business community maintained that if EFS authorisations are issued in accordance with the SOPs, then it could not be misused. For instance, there is a condition that EFS category-A authorisation will be granted to those manufacture -cum-exporters whose export is 60 per cent or above their total annual production in last two years but authorisations are also being issued to those who do not export 60 per cent of their total production.
The sources said that the business community proposed that the process of EFS authorisation facility should be faceless and the role of agents be eliminated as they are source of illegal income for the FBR people only.
According to sources, FBR officials present in the meeting highlighted few cases which are under investigation with respect to misuse of EFS fund. They assured maximum assistance to Chamber in this regard.
The meeting decided that Federal Board of Revenue will consult the association and get the details to curb misuse and action taken be submitted to SIFC by January 25, 2025.
The delegation also raised administrative and law and order issues being faced by the SITE .The Association requested to provide electricity 24/7 for continued operation of the SITE industry, and requested an improvement of roads and utilities in SITE. The delegation also highlighted issue of poor law and order situation in SITE area.
The representative of government of Sindh agreed to look into these issues on a priority basis. Home Department Sindh assured to extend all possible assistance to improve law and order situation in SITE industrial area.
The meeting decided that K-Electric (KE) would hold working group meeting with the Chamber and resolve the issues of energy at priority.
The Chief Secretary Sindh agreed to look into the other administrative issues (water and road infrastructure) being faced by SITE Karachi as they fall within the domain of Sindh government. He and IG Sindh will consult DG Rangers and hold a meeting with the management of SITE Karachi for improving law and order situation. Outcome of both meetings will be shared with SIFC by January 20, 2025.
The meeting was apprised that currently the SITE is under the provincial government; however, support of SIFC is the need for formation of a SITE Management and Development Company. Commerce Ministry assured that it would request comments from Sindh government on the issue. The meeting decided that Commerce Ministry will obtain comments from government of Sindh on the matter by January 15, 2025.
The Association briefly explained about the usage of Export Development Fund and requested for a special grant to be allocated for SITE out of EDF.
Ministry of Commerce and FBR apprised that this fund is to be utilised for promotion of exports of the country. Ministry of Commerce assured all possible assistance on the matter.
The meeting directed Ministry of Commerce to convene a meeting of the EDF board for effective utilisation of the fund and invite recommendations from the business community especially leading exporters. The Chair/ Secretary SIFC emphasised that the fund should be utilised for increasing exports and for the benefits of exporters; Commerce Ministry was tasked to furnish a report on this matter by January 15, 2025.
The delegation stated that world is moving towards new technologies and processing of used water through combined effluent treatment plants has now become one of the perquisites for textile export. They requested installation of same facility for textile units.
The meeting decided that the Chamber and government Sindh will carry out a joint feasibility study for installation of subject plant and share the outcome by January 25, 2025.
The delegation was apprised about difficulties being faced by senior citizens and old tax payers for biometric registration while submitting their tax for drawing their pay.
The representative of State Bank of Pakistan agreed to study the proposal for establishment of separate mobile biometric counters at respective banks/ locations to facilitate senior citizens. It was decided that SBP, NADRA, FBR and PSW would hold a Working Group on this issue and its outcome will be shared with SIFC by January 25, 2025. The delegation requested waiving off duties on import of biomass boilers to facilitate the textile business. The meeting asked FBR for valuable input on this matter and was tasked to workout feasibility on the same. FBR was tasked to carry out feasibility on the subject and share update with SIFC by January 20, 2025.
The businessmen delegation comprised of Jawed Bilwani President KCCI, Zubair Motiwala Chairman PAJCCI, Junaid Makda President PAJCCI, Fazal Moqeem Khan, President Sarhad Chamber of Commerce and Industry (SCCI), Zulfiqar Ali Chaudhry Chairman APTPMA, Ahmed Azeem Alvi President SITE Association, Younas Bashir former President KCCI and Chairman SITE Association Suleman Chawala, former senior Vice President FPCCI, Zia ul Haq Sarhadi and others.
Copyright Business Recorder, 2025