ISLAMABAD
The All Pakistan Business Forum (APBF), while appreciating the approval of the new textile policy and auto industry development and export plan by the Economic Coordination Committee of the Cabinet, has called for speedy implementation of them, as it is vital for new investment and marketing plan in the major industrial sectors.
APBF President Syed Maaz Mahmood said that the Economic Coordination Committee of the cabinet has finally approved the policies for two major sectors, with the directives to relevant stakeholders to take the Federal Board of Revenue and power division’s input, leading to further delay in implementing these vital policies.
He said these policies have been pending since 2019 and several drafts were submitted to the ECC for approval and now the ECC has once again directed the commerce ministry to incorporate inputs of the FBR and the finance division and meet the observations of power division while finalizing them, which will further delay their implementation.
APBF Chairman Ibrahim Qureshi appreciated the initiatives in the Industry Development and Export Plan 2021-26 to relax taxes and allowing new technologies. He said that the manufacturers will set a 10% export target by 2026 that is a very good initiative.
It will not only encourage manufacturers to boost up the capabilities but they will also earn much-needed foreign exchange for the national exchequer. Likewise, tax incentives for export are also a good sign for the exports of the country.
Ibrahim Qureshi said the government had announced several schemes in the past, including duty-free import of industrial machinery, reduction of mark-up rate for export refinance settlement of outstanding refund claims and rationalization of refund regime, but the industry was not getting benefits yet.
The APBF President said the industry is providing direct and indirect millions of jobs which required a proper policy, he added. He urged the government to redress the problems of the industry by taking comprehensive and innovative solutions in new policy.
Maaz Mahmood added that a clear and long-term policy will provide investors a clear vision that the government of Pakistan is ready to support the industry of Pakistan on long-term basis.
He said that the industrial sector has been affected seriously due to long delay in the final announcement of the new policy by Economic Coordination Committee of the cabinet, as the PM had given approval in this regard a long ago.
He was of the view that further delay in the implementation would result in delay or even backing out of investors from future local and foreign investment in the industry. Presently, we are in short production capacity and several exporters are refusing export orders because there is not enough capacity available in the country.
He claimed that targets set were ambitious and financial commitments of hundreds of billions of rupees in previous policies were made by the past governments to achieve them.
However, commitments were not fulfilled and timely payments were not doled out in financial support schemes. Further, funds were not allocated for public sector development under infrastructure, vocational training, productivity and compliance related programs.
