ISLAMABAD
The Ministry of Commerce will convey Finance Ministry to restore zero-rated tax facility to the five export oriented sectors, give resources for export development fund and clear the exporters refunds in the forthcoming budget in order to increase the country’s exports.
“We will ask the Ministry of Finance to clear the exporters refunds and to restore the zero-rated regime for the major exports sector in the upcoming budget so that issue of refunds could not arise”, Federal Minister for Commerce, Khurram Dastgir Khan said while addressing a press conference here. He emphasised the Finance Ministry to provide resources for the export development fund. The arrears under export development fund would reach to Rs 30 billion by the end of outgoing financial year 2014-15, as the amounted accumulated at Rs5-6 billion annual against which finance ministry disbursed only Rs 1-1.25 billion, he added.
The Commerce Minister said that Cabinet on Tuesday approved the three years budget strategy paper 2015-18, which would move the economy towards growth from stabilisation. The PML-N government in its first two years had improved the country’s foreign exchange reserves, balance of payment position and reduced its non-development expenditures by 30 percent. Dastgir Khan said that Pakistan is confronting with two major challenges of energy and terrorism, which are main obstacles in attracting foreign investment in the country.
Talking about the declining exports of the country, the Commerce Minister said that exports had reduced due to the decreasing prices of cotton, cotton yarn and clothes in international market, which ultimately affected the Pakistan’s exports. Pakistan’s exports had declined by over five percent to $19.9 billion during ten months (July-April) of the outgoing fiscal year from $20.98 billion of the corresponding period of previous year.
He informed the media that Prime Minister Nawaz Sharif has given approval to accede to the TIR Convention, which is a great step for trade facilitation to the neighbouring countries on the Western borders and beyond. TIR Convention provides a legal framework for traffic-in-transit of goods across borders among the contracting parties without involving payment of Customs duties and taxes.
United Nations Economic Commission for Europe (UNECE) produced the TIR Convention that came into force in 1975. International Road Transport Union (IRU), Geneva is responsible for implementing the Convention. As many as 68 states and the European Union are parties to the Convention.