Bank transactions: Tax dispute may be settled by month-end

Exports to get a boost when tax refunds are cleared

LAHORE: Trade Development Authority of Pakistan (TDAP) Chief Executive Officer SM Muneer has voiced hope that the issue of withholding tax on bank transactions will be resolved by the end of November.

Speaking to businessmen at the Lahore Chamber of Commerce and Industry (LCCI) on Wednesday, he stressed that the government was making all efforts to boost exports of Pakistani products to the global market.

“Exports have recorded a decline due to international recession; they are falling in terms of value, not in terms of volumes,” he said. “Therefore, our goods are earning less foreign exchange.”

However, the difficult times were not faced by Pakistan alone, competitors like India and China have also seen their exports go down.

The issue of unpaid tax refund claims of businessmen also came up for discussion. “Exports will get a boost once the matter of tax refunds worth billions of rupees (stuck with the government) is resolved,” he said.

LCCI President Sheikh Muhammad Arshad warned that a continuous fall in exports was a matter of concern.

In the previous three years - 2012, 2013 and 2014 - exports stood at $24.6 billion, $25.1 billion and $24.7 billion, respectively, showing the figure has remained around the same level. Unlike Pakistan, Arshad said, regional countries such as Bangladesh and Sri Lanka had excelled in exports.

He suggested that the TDAP should focus on exploring new markets, especially for value-added goods. “It is high time to diversify our products and export markets; about 49% of our exports find their way to just six countries.”

Bangladesh has left Pakistan far behind in export earnings. In 2008, Pakistan’s exports were 25% higher than those of Bangladesh, but now the situation is totally reverse.

“These figures imply that our efforts are only meant to maintain the current level of exports rather than targeting to excel,” Arshad remarked.

Speaking about the European Union’s GSP Plus status, he said as soon as Pakistan got the preferential trade facility, the Indian government announced incentives for its textile exporters to wipe out the edge Pakistan had started enjoying. The neighbour did succeed in its planning.

Arshad was of the view that the TDAP should have acted proactively while proposing the government the required steps.

Published in The Express Tribune, November 26^th, 2015.

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