Business community demand easing of import curbs
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 percent 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.
Trade deficit shrinks one-third to $ 17 billion
Pakistan’s Trade deficit shrank one-third to $17 billion in the first half of current fiscal year on the back of compression of imports, which are still large for a country that has a mere $5.8 billion in foreign currency reserves coupled with political inaction to rectify the situation. From July through December 2022, the gap between imports and exports was recorded at $17.1 billion, down by $8.3 billion, or 33 percent, compared to the same period of last year, the Pakistan Bureau of Statistics (PBS) reported on Tuesday. Despite giving hundreds of billions of rupees in subsidies, cheap loans, almost no taxes and 100 percent depreciation of the rupee in the past four years, the country’s exports dipped in the first half of FY23. According to the PBS, exports stood at $14.2 billion, down by $876 million, or 5.8 percent, during the Jul-Dec period. The annual export target of nearly $38 billion has become irrelevant due to the poor performance.
Officials of Senate, NA panels upset ministry
The Power Division has voiced disappointment over the involvement of parliamentary committees in administrative affairs of the government. Senate and National Assembly standing committees on power have been taking up power-sector issues in recent days. The committees comprise politicians from different political parties who are promoting electricity schemes of their constituencies. On some occasions, the parliamentarians have raised questions over the Power Division’s reluctance to carry out the development schemes that were contrary to the electricity supply policy. The Power Division, while expressing its reservations, has conveyed to the Senate Secretariat that electricity and other policymaking fell within the domain of the federal minister and prime minister. Sources told that the Power Division argued that the role of parliamentary committees was advisory in nature and they did not have any mandate to issue directives to the government about the administrative affairs.
ECC permits export of more sugar
The Government on Tuesday allowed export of an additional 150,000 tons of sugar on the basis of “factually incorrect” production figures, and took ad hoc decisions for continued supply of imported gas and urea to temporarily avoid a budget cost of Rs130 billion. Instead of giving Rs100 billion in additional budget to save Pakistan State Oil (PSO) from default, the Economic Coordination Committee (ECC) of the cabinet directed that a loan of Rs50 billion should be raised from banks on the back of sovereign guarantees. The ECC also did not take urea pricing and gas supply cost related decisions to save another chunk of about Rs30 billion on account of subsidy against the imported urea and supplying subsidised gas to two plants. However, it rushed to approve export of 150,000 tons of sugar while also formalising the role of Pakistan Sugar Mills Association (PSMA) in export. In the past, the association was accused of manipulating sugar price by the Competition Commission of Pakistan.
Govt must ensure timely lifting of waste: MNA
Solid waste burning badly affects environment and it is the responsibility of government departments to ensure timely lifting of waste, said Member National Assembly (MNA) and Parliamentary Secretary Naz Baloch. Talking to members of the SITE Association of Industry (SAI), the MNA affirmed that she would take up the longstanding issue of Combined Effluent Treatment Plant (CETP) and a water pipeline network from Hub Dam to SITE at various levels in the federal and provincial governments. Baloch assured businessmen of continued support for the betterment of Karachi, particularly the improvement in civic amenities in the SITE industrial area. She also discussed matters pertaining to losses caused by 2022 floods, impact of climate change and efforts for mitigation and adaptation, waste management and plantation drive for reducing air pollution.
FBR introduces many modules for facilitation of exporters
The Federal Board of Revenue (FBR) has developed and launched various modules for facilitation of exporters under Export Facilitation Scheme (EFS). Export modules were rolled out at Aptma House, Lahore by Nayyer Shafique, Collector Customs along with a team of technical experts, senior officers from Directorate General of Customs Automation and PRAL. Earlier on his arrival, Nayyar Shafique was welcomed by Kamran Arshad, Senior Vice Chairman and Raza Baqir, Secretary General Aptma. The workshop was attended by a large number of Aptma members from all over the country. Nayyer Shafique, Collector Customs, informed the FBR has developed various modules for smooth functioning of Export Facilitation Scheme for the facilitation of all categories of exporters including both direct and indirect exporters.