KARACHI, May 20: Move to withdraw the facility of duty free import of machinery in the forthcoming budget is being resented by exporters who feel it will cripple the exports and also stop fresh investment.
Former chairman, Pakistan Bedwear Exporters Association (PBEA), Shabir Ahmed in a statement has urged the government not to fall in the trap of some vested interest who want to cover up their illegal imports made under SRO554(I)/98.
He said under the SRO554 new projects that export 50 per cent of their production during first three years and 60 per cent after three years are allowed duty free import of machinery. For existing projects additional capacity generated due to expansion is 50 per cent be exported during first three years and 60 per cent after three years.
However, he said manufacturers have imported machinery under SRO 554 for their local production but now they feel threatened that they would be penalized. In order to save their skin Shabir Ahmed said they are bent upon destroying the value-added textile industry and exports because this would stop investment in the country.
He said many projects of value-added textile industry like garments, processing, bedwear are in the pipeline and for which letter of credit have been established for importing machinery.
