Extending scope: Ministry considering zero-rated facility for 9 sectors

Exporters have 8 more years to explore EU markets under GSP Plus

FAISALABAD: Commerce Minister Khurram Dastgir Khan has said the government has decided to introduce the zero-rated regime for exports from the next financial year.

Talking to members of the Faisalabad Chamber of Commerce and Industry (FCCI) on Monday, he said the government had to face multifarious and multidimensional challenges, but due to its efforts, improvement could be seen in the energy sector.

Referring to the energy crisis, he said 16 hours of load-shedding had been reduced to only four hours and efforts for providing further relief to the people were also under way.

Dastgir said initially the proposal was under consideration to allow zero-rating to only five export sectors but now the ministry was considering extending it to nine value-added sectors.

“We have done a lot but more has to be done to put the country on the road to progress and prosperity.”

The minister said the refund claim issues would be eliminated with the introduction of the zero-rated regime and then all efforts could be diverted to the payment of pending refund claims.

GSP Plus status is one of the biggest facilities, which has played an instrumental role in the 33% increase in exports to the EU countries.

Unprecedented boost has been recorded in the export of readymade garments, leather products and home textile, hence, he said, the apprehension that Pakistan had failed to reap benefits of GSP Plus and the facility would be withdrawn ahead of schedule should be dismissed.

Dastgir categorically announced that the facility would continue until December 31, 2023 and Pakistani exporters had eight years to explore new markets and export new products to the EU countries.

Referring to the poor performance of commercial counsellors abroad, he said the ministry of commerce had summoned them back. New counsellors have been recruited purely on merit.

The federal minister said, “Export refinance rate has been reduced to the minimum 3.5%, similarly long-term financing is available at 5.5%, despite these positive indicators the stagnation in industrial growth is due to the high cost of doing business in this region.”

In this context, the government has reduced the electricity tariff and efforts are being made to further trim it.

Published in The Express Tribune, March 1^st, 2016.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.