News Column

PDMEA and FPCCI term Budget as export and investment oriented

June 6, 2014

Dr. Mirza Ikhtiar Baig, Chairman Pakistan Denim Manufacturers & Exporters Association (PDMEA) and FPCCI Standing Committee on Banking, Credit & Finance termed the Budget 2014-15 export and investment oriented and said that the incentives announced by the Finance Minister in the budget are to promote new investment in manufacturing sector and to boost exports.

He particularly acknowledged the support to textile sector, stated in a press release issued here on Wednesday. Dr. Baig appreciated the reduction of 200 basis points in the interest rates of Export Refinancing (ERF) and Longterm Financing (LTFF) which would lead increase in exports and help in achieving the benefits of GSP Plus facility granted by EU. "The reduction in the rates would also help in attracting new foreign and local investment, setting up new industrial units and creating new job opportunities," he said.

Dr. Baig said that the proposed rebate of one percent on export of fabric, two percent on made-ups and four percent on garments would also help in increasing exports of textile goods. He appreciated government's announcement allowing duty-free imports of machinery for another two years. Dr. Baig said that the establishment of Export-Import Bank (Exim Bank) was an old demand of the exporters.

The bank will facilitate exporters to cater to their financial needs with innovative export products including export guarantees. Dr. Baig said that the budget lacks some tax structural reforms like No GST No Refund proposal of FPCCI.

However the Finance Minister agreed in PreBudget meeting for a fixed 5% (Non-refundable) Sales Tax on local sales and has announced a commission in the budget to evaluate the proposal. Dr. Baig said that the Finance Minister did not announce measures to contain heavy losses of public sector loss making entities and circular debt. But as a whole Dr. Baig called the budget business friendly, aiming to boost new investments and exports.

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Source: National Herald Tribune (Pakistan)

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