FAISALABAD, Oct 21: Commerce Minister Humayun Akhtar Khan has said that efforts are afoot to enable Pakistani exporters to avail the GSP plus (Generalized System of Preference) facility in the European Union market. He also said that the EU-enforced anti-dumping duty was being challenged by the affected exporters.
Speaking to members of the Pakistan Textile Exporters Association here on Friday, the minister said that in the first phase, export items under the 20 per cent duty regime in the EU would be able to enjoy special concession, while in the second phase, the items with six per cent duty would avail the same facility. And in third and final phase, he said, the export items having 3.5 per cent duty would get a duty-free status in the EU market.
He said the local leather industry would get benefit from the GSP plus scheme. “This GSP regime will remain in force till 2008 and there will be no graduation from this regime as has been in the case of phased out scheme of 2004. The freight subsidy scheme for exporters is presently under review and a decision in this respect would be announced after the conclusion of review exercise,” the minister maintained.
Regarding zero rating of sales tax, Mr Khan said that its real impact would be felt after some time, particularly by small exporters who would be relieved of liquidity crunch. About specific difficulties of stock consumption being faced by the exporters, he invited them to come up with specific demands in writing so that these could be resolved on the spot.
Regarding slashing of duty drawback, the minister pointed out that drawback was being reduced proportionate to a cut in import duties. The government has neutralized sovereign guarantees of ICI to facilitate Pakistani exports of manmade fibre component textiles. He points out that contrary to world ratio 60:40 blended fabrics component, Pakistani manufacturers were making 80:20 cotton-polyester, which has now improved to 25:75 ratio and is still behind the world ratio.
Regarding the six per cent research and development (R&D) facility presently available to the garment sector and being demanded by home textile, the minister said that ultimate aim of the government was to make the industry self-reliant and competitive without subsidies, hence the restriction of R&D facility to the garment sector.
Mr Khan said the reduction in dumping duty by the EU from 13.1 to 9.9 per cent was only provisional and Pakistan was trying to get the duty removed in toto. “For this purpose efforts have been mounted and the matter is expected to be taken up again at the next WTO ministerial meeting in December.”
Earlier, PTEA Chairman Rana Arif Tauseef briefed the minister about the relief exercise of Rs30 million under taken by the exporters.
The commerce minister also visited the Faisalabad Chamber of Commerce and Industry and urged industrialists to donate generously to the earthquake victims. He said that his visit of Faisalabad was aimed at mustering more aid for the quake victims. “The country needs more donations of cash while quilts, blankets and tents are the prime requirements in kind.”
