LAHORE: Prime Minister’s Trade and Investment Advisor Abdul Razak Dawood assured the Lahore Chamber of Commerce and Industry to resolve 203 (B) and invoices issues soon. “I will speak to the Minister of Finance in this regard,” he said.
He was speaking to the Lahore Chamber of Commerce and Industry. LCCI President Mian Tariq Misbah chaired the meeting while former LCCI Presidents Mian Misbah-ur-Rehman, Shahid Hassan Sheikh, Sohail Lashari, Irfan Iqbal Sheikh, former SVP Amjad Ali Jawa, Ali Hussam Asghar and Former Vice President Kashif Anwar also spoke about the occasion.
The adviser said the prime minister would have meetings with chamber presidents to set the export target for next year. He said Pakistan is moving from trade to manufacturing, which is the key to economic stability.
He said Pakistan’s trade with Uzbekistan and the Central Asian states was very low. These countries want to have access to the sea and Pakistan is the country that suits them best. He said Uzbekistan has acquired 25 acres of land which will increase trade between the two countries. He said the government will sign a transit trade agreement with Uzbekistan. He said two flights between Pakistan and Uzbekistan will be launched soon. He said Pakistan should focus on improving regional trade which remains very weak and needs to be exploited. Calling for an increase in regional trade, he gave the example of the European Union where regional trade was 90 percent.
Abdul Razak Dawood shared details of the agreements and MOUs reached during Prime Minister Imran Khan’s recent visit to Uzbekistan, saying the visit was a success. He informed the meeting that 71 agreements have been signed between the two countries. He invited businessmen to participate in the One Country Expo soon to be held in Tashkent. He added that economic and industrial recovery was at the forefront of the government’s agenda. He assured the businessmen that all problems in the industrial sector would be resolved amicably. “The Ministry of Commerce is actively engaging with all relevant stakeholders to understand the issues related to trade and investment in the current difficult situation,” he added. LCCI Chairman Mian Tariq Misbah said the Commerce Ministry deserves special appreciation for Pakistan’s outstanding export performance, as the 2020-21 export figure has exceeded $ 25 billion.
Mian Tariq Misbah said exorbitant fines have been imposed on importers under Article (28) 156 of the Finance Bill if they are unable, for whatever reason, to complete the necessary paperwork for reimbursement of their shipments. This clause is also contrary to the spirit of a favorable business environment and should therefore be withdrawn.
He said the requirement of having an invoice inside the containers should not be imposed on containers that are already in transit as they were shipped before the budget was announced and therefore do not contain invoices. .
He said Break-bulk containers should also be exempt from the condition of having invoices as it is not possible to put an invoice inside Break-bulk containers.
He said the artificial leather industry and the PVC flooring industry are facing post-budget anomalies as the duties on their raw materials have become higher than the duties on their finished products. This anomaly is hampering the local industry and requires your attention.
Mian Tariq Misbah said that the main raw materials in the artificial leather industry are PVC suspension resin and fabric which are subject to tariffs of 11% and 20% respectively. However, the tariff on finished artificial leather products, i.e. coated fabrics with woven backing and coated fabrics with non-woven backing, has been reduced from 20% to 11% and from 11% to 3%. respectively in the federal budget 2021-2022.
The president of the LCCI said that the export of copper raw material is hampering our SME sector. No export duty for copper is levied even though it is an important raw material for many small industries related to engineering sector in Pakistan. He said the issue of the misuse of tax exemptions granted to industries based in Federally / Provincial Administered Tribal Areas (FATA / PATA) on raw material imports remains largely unanswered.
The LCCI has reported to the State Bank that the ban on advance payments for commercial importers makes it very difficult for them to import vital raw materials and other essential components (spare parts and machinery). We recommend that commercial importers be allowed to import against advance payment of up to $ 20,000.
Former LCCI president Mian Misbah-ur-Rehman suggested forming a committee with the prime minister, finance minister, trade advisor and exporters as members.
Members of the executive committee Shahid Nazir, Shahzad Butt, Fiaz Haider, Zeshan Sohail Malik, Mardan Ali Zaidi, Uzma Shahid, Imran Bashir, Abdul Wadood Alvi and Malik Riaz Iqbal were also present.
Copyright Business Recorder, 2021