February 02, 2008	Saturday	Muharram 23, 1429

ISLAMABAD, Feb 1: Although Pakistan itself is a major exporter of good-quality furniture, the Federal Board of Revenue has decided to import furniture for new tax buildings from China under a World Bank-funded project.

Sources in the FBR told Dawn on Friday that an official delegation, led by a senior income tax official, was currently in Beijing for negotiating deals with Chinese furniture manufacturers.

“The move appears to be a compulsion from the World Bank to purchase furniture from the market outside Pakistan, and it speaks of the attitude exhibited by the tax machinery functionaries who negotiate such matters with international donor agencies,” said a source.

Pakistan exported furniture worth $6.105 million during the first half of the current fiscal year against $5.793 million in the corresponding period last year.As Pakistan was an exporter of furniture, there was no need for its import, said the source, adding it would be a unique case that a government department would be importing furniture for its office on loans to be paid by the taxpayers.

The World Bank has provided $102 million loan, $23 million grant by the DFID, while the remaining funds would be borne by Pakistan for implementation of the Tax Administration Reforms Project (Tarp).

A maximum portion of the loan has been allocated for purchase of new computers and cars, refurbishing old buildings, appointment of consultants for members hired from the private sector at market-based salaries and other facilities for tax officials.An official in the finance ministry said the government had announced various measures in the trade policy to promote export of furniture to earn foreign exchange for the country and to develop this industry.

He said more measures are likely to be taken for improving the competitiveness of Pakistan’s wood-based industry, which manufactures furniture, sports goods, construction material, plywood, crates, boxes, matches and papers.