LAHORE: The finance ministry has refused to release Rs28 billion to the commerce ministry under the Export Development Fund (EDF) for development of exports.

This was stated by Mr S M Munir, chairman, Trade Development Authority of Pakistan (TDAP) while speaking to members of the business community at the Lahore Chamber of Commerce and Industry.

He said that the Federal Board of Revenue (FBR) was sitting on genuine refunds of exporters worth Rs225 billion, which he claimed were shown in the IMF books as taxes.

The TDAP, he said, had identified bottlenecks faced by exporting sectors, but he felt ashamed that a resourceful country, like Pakistan, was hardly exporting goods and services worth $24 billion only.

He said the federal finance minister ran from pillar to post for arranging foreign loans of $1.0-$1.5 billion per year, adding he himself had asked the authorities to pay all due refunds, and exporters would refund the same amount to the government in the shape of equivalent dollars.

Munir said refunds should be made in one go as was done in the case of clearance of Independent Power Producers(IPP) dues in June 2013.

He said TDAP had written numerous letters to the FBR, but not a single letter had been replied. But now all letters were not only acknowledged, but suitable replies were also given within 1-3 days.

“For the past six months, I have been trying in vain to get an appointment with the prime minister to apprise him of the problems faced by exporters,” he said.

He said high power rates were another factor in export decline as against average power rate of 15 cents in Pakistan, the electricity was supplied to industries in India at 9 cents.

He conceded the rent charged for one exhibition hall in Karachi Expo Centre was Rs400,000 against Rs1.2 million in Lahore Expo Centre. However, he pointed out that TDAP was helpless in this regard because the expo halls were leased out for 99 years to party that could charge its own rates.

Regarding exporters’ complaints for not providing them space in international fairs where TDAP buys staff space, Munir said booking for stalls was done four months before the start of exhibition, advising the exporters to inform the TDAP about their intent six months before the start of the exhibition.

Published in Dawn, November 26th, 2015