Finance Minister Senator Ishaq Dar on Saturday met delegation of businesspersons and representatives of KP Chamber of Commerce led by Senator Ilyas Bilour.
The delegation emphasized grant of a new incentive package for Khyber Pakhtunkhwa in view of the economic difficulties arising due to the sensitive security situation that made the economy go sluggish. The delegation requested income tax holiday to all industries and businesses in KP for a period of five years and also requested that mark-up on bank loans should be subsidized, new investments in KP should be extended income tax exemption for five years and that moratorium on new gas connection in KPK should be lifted.
The delegation also drew the minister’s attention to the restriction of 100 metric tons export of ghee/cooking oil in three months imposed in March 2013. The delegation observed that the restriction/ceiling had rendered the ghee and cooking oil industry uncompetitive in the Afghan market where the foreign brand ghee was available at lower prices compared to the stuff manufactured in Pakistan. In order to give level-playing field to the ghee sector, the delegation said either the government should abolish the quota system or the quota of 1000 MT in 90 days should be enhanced to 1000 MT per month.
The minister issued instructions to the FBR chairman to extend thorough consideration to the proposals submitted by the KP delegation keeping in view the state of economy in the province. He said new incentives for the KP would be considered in the 2015-16 budget.