LAHORE: Advisor to Prime Minister on Commerce and Investment Abdul Razak Dawood has said that International Monitory Fund is the major hurdle for sales tax rate reduction in Pakistan.
While Speaking at Lahore Chamber of Commerce and Industries on Saturday, he said it is the demand of IMF that Regulatory Duty should be imposed on everything. “We have to impose RD as per IMF’s demand which results in reduction of sales tax in the country”, he added.
Talking about exports, the Advisor said that Pakistan’s exports diversification has been improved considerably during the last three years which is the only way to jack-up the exports.
Market and product diversification is the best way to jack-up the exports. “Our export of traditional items to non-traditional markets has increased 60% while export of non-traditional exports to non-traditional markets has gone up by 77% during last three years”, he added.
The Advisor to PM said that the government is going to introduce DL-TL policy in which extra incentives will be given on the exports of non-traditional products. The government is also going to sign TIR convention with Afghanistan for free movement of trucks to Central Asian States and other parts of this region.
He said that the government is targeting Central Asian Region to boost national exports. Government is also going to implement Look Africa Policy and an official delegation will visit Nigeria next month.
Dawood said that the Temporary Economic Refinance Facility (TERF) of the State Bank of Pakistan which was expired in March that will be restored for SMEs and other targeted sectors.
The Advisor said that the Engineering and Iron & Steel sectors will be next area of focus for tariff rationalization.
“As far as GSP Plus Status and Basmati Rice are concerned, the things are well under control”, he said and further added that though there are challenges but these are far less than the past three years.
He said that the import cost is increased due to inflation at international level. Oil imports have been increased in term of value. He said that the Lahore Chamber will be given representation in Export Development Fund Board.