Delayed refunds hurting exports: PEW

ISLAMABAD: The Pakistan Economy Watch (PEW) on Sunday said authorities have failed to provide enabling environment to exporters which will result in missed export target.

Country is set to miss export target of $27 billion frustrating all the efforts aimed at improving balance of payment situation. At one hand the FBR has stopped payment of refunds surpassing Rs 100 billion while on the other fake refund claims are processed and released immediately, said Dr. Murtaza Mughal, President PEW.

He said that fake cases are fabricated against exporters to delay refunds while the Export Development Fund dubbed as extortion by exporters is being misused since years. Dr. Murtaza Mughal said that the facility of GSP has benefitted the textile sector but has failed to benefit country or economy while majority of the trade agreements with friendly countries have remained counterproductive.

He said that the Commerce and IT ministries should have full control over Export Development Fund and Universal Service Fund which the Finance Ministry use for other purpose. Commerce and IT ministries should be freed from the influence of Finance ministry so that country could develop through increased trade and commerce, he demanded.

Dr. Mughal noted that TDAP is more interested in traders’ politics and cultural activities than promotion of exports. It has blocked rebate of the Sugar industry worth 2.7 billion rupees from years and all the efforts to get it released have foiled.

TDAP would spend hefty amount on expos and always claim export orders worth billions of dollars after these events but such claims have never been supported by official trade statistics. Responsible authorities should not misguide nation for personal promotion, he demanded.

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