FBR grilled for delaying clearance of textile machinery

Published August 8, 2018
FBR in the spotlight as imported textile machinery piles up at the port awaiting clearance that ought to have been underway two months ago since cabinet approval was given. The Senate is now demanding an explanation from the Chair of the FBR for the delay.
FBR in the spotlight as imported textile machinery piles up at the port awaiting clearance that ought to have been underway two months ago since cabinet approval was given. The Senate is now demanding an explanation from the Chair of the FBR for the delay.

ISLAMABAD: The Senate Standing Committee on Commerce and Textile on Tuesday directed the Federal Board of Revenue (FBR) to explain reasons for withholding clearance of textile machinery at Karachi ports despite cabinet’s approval.

The committee meeting chaired by Shibli Faraz was surprised when Textile Division Secretary Shahrukh Nusrat informed the committee that Customs Department had blocked the imported machinery at ports.

Nusrat said that the cabinet on May 31 had already granted exemption on import of textile machinery.

FBR Chairperson Rukhsana Yasmin was asked to provide the reasons for withholding clearance of the machinery. The committee gave a deadline of 10 days.

Commerce Secretary Younus Dagha informed the committee that his division is working on a plan suggesting enhanced regulatory duties on luxury items.

On an issue of revising free trade agreements with China, Dagha said the two governments have already held several rounds of talks. He said that the trade deficit with China has reached to $12.7 billion.

Senate committee gives 10-day deadline for submitting reasons

He also claimed that China has given more concessions in duties to Association of Southeast Asian Nations, adding “we have asked for similar concessions under the revised treaty.”

He went on to say that local industries were facing the threat of under-invoicing and blamed the importers for this crime. He pointed to better enforcement as the solution to this issue.

Faraz said that new government will have to evolve fresh trade and economic policies as the existing policies are not producing the desired results.

It was agreed unanimously that there is a need for a coordinated and integrated institutional approach to boost exports from the country.

The committee also directed the Commerce Division to appraise it about the export policy measures in the next meeting.

Concerns were raised over the falling export proceeds from textile and clothing sectors. The Commerce Division was directed to improve performance from these areas.

Faraz also urged the commerce and textile divisions to align their direction in the right way to boost country’s exports and reduce the trade deficit.

He also cautioned that Pakistan’s dependence on export of textile and raw agriculture products will not help in this regard.

He also held that just reducing the tariffs on import of machinery will not help achieve the desired results. The government will have to take further initiatives to make export-oriented products more competitive and encourage value addition in the value chain, he added.

Dagha said there is a need for a comprehensive policy framework for sustainable growth in the country.

Senator Atta ur Rehman pointed out that the industrial units are closing down mainly because of corruption and poor law and order situation in the country. He said government should take concrete steps to control the increasing trend of crimes in the country.

Rehman informed the committee that private businesses are complaining about the rising corruption trend in the country and that people have lost confidence in the institutions.

The committee also discussed the dwindling power looms sector in Faisalabad and directed Nusrat to work out a strategy in this regard.

Published in Dawn, August 8th, 2018

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