Page 8 - May-June-2019

08 09

News

According to Mr Abdul Razak Dawood, Advisor to - EFS and LTFF ceiling will be increased by Rs 100
PM on Commerce, govt. is unlikely to achieve export billion and Rs 200 billion.
target set for the current FY. His earlier projections of - DLTL will continue for five zero-rated sectors.
$27-28 bn exports, despite govt. subsidies, were - Rs 12 billion in refunds was released under DDT for
unrealistic. textile and non-textile sectors.

He said that export proceeds in dollar terms Road map for remaining refunds of Rs 115 billion
remained static and blamed the global slowdown for If all exporters open an account with CDC, FBR will
the static growth claiming that global trade issue promissory notes for sales tax refunds of
decelerated by 3pc while the price of commodities Rs40billion by the end of May. Another Rs 25 billion
also fell by over 7pc amid trade war between China would be released for the DLTL/DDT schemes till
and US. June 20, 2019. The FBR will also issue promissory
notes of Rs 50 billion having sales tax refunds and
Govt. regarding the issue of pending refunds with the FBR. notes will be of three-year tenure with an interest rate
income tax by the end of July 2019. The promissory
He has held several meetings with tax officials
of 10%. Also, a 5% customs duty to be applied to raw
He added that the FBR wants to restore full sales tax
cotton imports from July 1, 2019.
on the local supply of textile and other four sectors in
promises the domestic market. According to the external trade statistics for the
month of April, 2019 by PBS, the exports in April,
The adviser emphasized the need for increasing tax
incentives to revenues in the country and added that the 2019 was $2,094mn (provisional) as compared to
$1,979 mn (provisional) in March, 2019 showing an
incumbent government had taken right decisions to
increase of 5.81pc but decreased by 1.54pc as
collect due taxes from all individuals including
compared to $2,127 mn in April, 2018.
industrialists. He said exports in the value-added
textile sectors have been on a positive trend whereas yarn The exports during July–April, 2018-2019 totaled
exports fell during the period under review.
$19,169mn (provisional) against $19,191mn during
sector to PTI has decided to continue providing incentives to the corresponding period of last year showing a
decrease of 0.12pc.
the textile industry to boost value added textile
exports to $30 billion in coming five years. Mr
Main commodities of exports during April, 2019 were
Khurram Mukhtar, Patron-in-Chief PTEA, confirmed
improve that a task force led by Dr Salman Shah will formulate Knitwear (Rs34,170mn), Readymade garments (Rs
32,658mn), Bed wear (Rs 25,527mn), Cotton cloth
a plan for the purposal within coming eight weeks.
(Rs 25,208 mn), Cotton yarn (Rs 14,909 mn), Towels
He told, “Textile exports in first nine months of the
(Rs 9,977 mn) and Made-up articles (Rs 8,112 mn).
static export current fiscal year, grew 19% in quantity and 3% in Based on the provisional figures of imports and
value due to the exchange rate adjustment.”
exports the balance of trade in April, 2019 was
Key incentives
growth - The special energy package with electricity at (-)2,659 mn US dollars. The balance of trade figures
cumulative from July-April, 2018 - 2019 were
$7.5cents per kWh and gas at $6.50 per MMBtu will
(-)26,302 mn US dollars.
continue for five zero-rated sectors.

May/June 2019 May/June 2019