The Ministry of Commerce (MoC) has initiated final deliberations on the trade policy proposals received from different stakeholders for the Trade Policy 2011-12, which is likely to be announced during the last week of July. The ministry has decided to extend three per cent research and development (R&D) support across the board to all non-textile sectors or to selected products and selected markets, Pakistan Today has learnt on Thursday.
Official documents reveal that the MoC has agreed to increase subsidy up to $150 per day to trade delegates, while the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has proposed that the government enhance it to $300 per day.
It shows that the MoC and National Tariff Commission (NTC) are also considering to formulate a system in which Export Development Fund (EDF) surcharge will be directly credited in the MoC account, but after going through the relevant laws.
COTTON AND TEXTILE
Karachi Cotton Association (KCA) has urged the ministry to abolish Cotton Cess in order to facilitate the textile industry and export trade, but the MoC has opposed the proposal and asked the Ministry of Textile for its input. In addition, the ministry has also decided to forward the proposal to release funds out of EDF for the purchase of one uster, High Volume Instrument (HVI) spectrum for the KCA’s fiber testing laboratory. The MoC has asked the Ministry of Textile for its input on the demand of Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) to allow the export of surplus quantity of essential raw material.
PHARMACEUTICAL
Documents disclose that the MoC has decided to mark pharmaceutical exports to Afghanistan with label “For exports to Afghanistan only”. In addition, the MoC has sought Federal Board of Revenue’s (FBR) view on rebate to pharmaceuticals exports to Afghanistan.
AGRICULTURE
On the proposal of Larkana Chamber of Commerce and Industry, the MoC has asked the Trade Development Authority of Pakistan (TDAP) for its input on setting up of seed processing units, guava and fruit processing plant, diary milk and products plant, animal feed and many other export oriented industries in the Larkana Division. In addition, the MoC asked the TDAP for its recommendation on establishment of Special Industrial Free Zone in Larkana and re-functioning of Larkana Dry Port.
MINING
The MoC is formulating a special incentive package for the development of mining and marble sector on the proposal of Mardan Chamber of Commerce and Industry. Documents indicate that these incentives would be offered to provide modern sophisticated equipments to the mine to replace the outdated method of extraction of marble blocks by means of blasting in which more than 70 per cent wastage is involved.
LEATHER, SPORTS AND
SURGICAL GOODS
Jhang Chamber of Commerce and Industry asked the MoC to offer subsidy on export of leather garments, sports goods and surgical instruments, while Pakistan Sports Goods Manufacturers and Exporters Association (PSGMEA) urged the ministry to incorporate inland freight subsidy on transport for upcountry exporters in the upcoming trade policy, but the ministry has opposed both proposals and initiated detail discussion with the TDAP on the subsidy issue. The MoC has also accepted the proposal of Pakistan Tanners Association (PTA) to provide ad hoc relief in the shape of additional duty drawback at the rate of one per cent of export value to the exporters. But it will be considered along with general leather sector package, documents highlight. Pakistan Gloves Manufacturers Association (PGMA) asked the government to set up warehouse facility in USA and Europe countries to facilitate exporters. In addition, the import of sampling / accessories materials should be made much simplified and duty free. The ministry has forwarded proposals to the TDAP for their recommendation. It was also proposed that the Provincial Infrastructure Tax ranging from 0.80 per cent to 0.85 per cent imposed by Sindh Government at import stage should be abolished. The ministry has decided to resolve the issue in the meeting of Council of Common Interests and Ministry of Finance. The MoC has opposed the export/import of leather product samples to exporters on the ratio of last year units shipped irrespective of the specific annual monetary or quantitative ceilings and forwarded the proposal to TDAP. The ministry has also set aside the proposal of leather product exporters to allow export/import of samples in a single year equal to five per cent of total quantity exported by them in the previous year. The ministry has the similar viewpoint of the demand of new exporters to claim up to $5,000 per year.
JUTE
Pakistan Jute Mills Association (PJMA) asked the government to announce soft loan to jute industry and promulgate a Jute Mandatory Packaging Order. The MoC has decided to discuss the soft loan issue with committee on Trade Financing and asked the Environment Protection Authority about the validity of the demand of mandatory jute packaging.
FISHERIES
The ministry has supported the demand of Pakistan Fisheries Exporters Association (PFEA) to exempt the import of equipment and machinery for sea foods from payment of sales tax to encourage sea food industry.
