ISLAMABAD – Adviser to Prime Minister on Commerce and Investment AbdulRazak Dawood Friday informed the Senate that an agreement has been signedwith Iran to construct markets at border to facilitate the traders of thearea.
Speaking during Question Hour in the House, the adviser said theconstruction of markets would be started soon that would bring progress andprosperity in the area.
He said there has been an increase of 7.14 percent (in USD terms) in thetotal value of exports for the period July-2020 to March-2021 compared tothe same period of financial year-2019-2020.
As compared to March, 2020, he said the increase in exports for the monthof March 2021, is 30.66 percent (in USD terms).
He said the government is making concerted efforts to promote exportsthrough facilitation of the industrial sector; to reduce its costs, dutieson raw materials have been rationalized.
The Adviser said that in addition to that, for export-oriented sectors gasand – RLNG prices have been rationalized at Rs.852/MMBtu and $6.5/ MMBturespectively.
He said to support local industry, electricity has been provided at 9cents/kWh to export-oriented sectors including textile and apparel, andthat the government has announced 50 percent relief in electricity tariffuntil June 2021 for SMEs.
To provide easier financing, he said the mark up on Long Term FinancingFacility (LTFF) and Export Finance Scheme (EFS) has been continued at 5percent and 3 percent respectively.
The Tariff Policy Board (TPB) under National Tariff Policy (NTP) decided torationalize tariffs, through the Finance Act, 2020, on almost 2000 tarifflines. The additional customs duty of 2 percent on 1623 tariff lines,consisting of basic raw material used by the industry, has been removed, headded.
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He said the federal government is providing incentives on exports ofcommodities through payments of duty drawbacks and Drawback on Local Taxesand Levies (DLTL).
In order to implement the “Make in Pakistan Initiative” duties have beenreduced on 112 tariff lines, consisting of input/intermediate goods, usedby the exporters in the domestic production, he added.
With the view to incentivize the textile sector, Abdul Razak said theTextile Policy 2020-2025 is in the final stages of formulation, under whichelectricity will be provided at 9 cents/kWh, and gas and RLNG at aconcessionary rate to the industry.
The Adviser said that duties on 90 items have also been reduced from 11percent to 3 percent and 0 percent on intermediate goods which were notmanufactured locally.
He said the government is conducting intensive trade diplomacy and tryingto obtain access to new markets for local traders and industry through FreeTrade Agreements (FTAs) and Preferential Trade Agreements (PTAs).
Abdul Razak said the government is already working on PTAs with Afghanistanand Central Asian Republics (CARs). Formulation of Strategic Trade PolicyFramework (STPF) 2020-25 is in the final stages, which will cover thepolicy interventions aimed at creating competitiveness, tariff reform,investment in export-oriented production, integration into global valuechains, enhanced market access, institutional strengthening, etc.
