Businessmen demand easing of import curbs

Industries need to import raw material to produce goods for export

ISLAMABAD:

Pakistan must increase exports to sustain economic growth, therefore, the State Bank of Pakistan (SBP) should further relax import restrictions and formulate a more lenient policy, said acting Islamabad Chamber of Commerce and Industry (ICCI) President Faad Waheed.

Talking to a delegation of business community, he pointed out that many export-oriented industries were required to import raw material and intermediate goods to produce finished products for export.

He lauded the SBP’s initiative of relaxing some of the restrictions and allowing imports under Chapter 84, 85 and certain items under Chapter 87 from January 2, which would help to improve manufacturing and business activities.

Waheed said that revenue collection at the import stage contributed around 50% to the total collection. However, policy restrictions were affecting tax receipts and revenue loss at the import stage ranged from Rs30 billion to Rs50 billion per month.

“If import curbs are not eased, the contractionary policy will further impact revenue collection in the coming months.” The ICCI leader asked the SBP to take major chambers of commerce and industry on board so that business activities could flourish and exports could be increased to shore up foreign currency reserves of the country.

The Federal Board of Revenue (FBR) has missed its revenue collection target for December by nearly 24%, or Rs225 billion, “mainly due to a sharp fall in imports”.

Published in The Express Tribune, January 4^th, 2023.

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