ISLAMABAD: The commerce ministry has formed a special committee to assess proposals from exp­o­rters amidst opposition parties’ rejection of the government’s proposed tax measures.

Ahead of the passage of the Finance Bill 2024 in the parliament, Commerce Minister Jam Kamal Khan held a meeting on Monday to address concerns raised by the All Export Assoc­iation of Pakistan. The National Assembly will likely approve the finance bill in the next few days.

The committee will present its recommendations to the finance minister. However, it is unclear if these recommendations will be submitted prior to or following the approval of the Finance Bill 2024.

An official announcement of the commerce ministry said the meeting was convened on Prime Minister Shehbaz Sharif’s directions to address concerns about the federal budget among exporters and other business communities.

In the budget 2024-25, the government has changed the tax regime for exporters from 1pc Final Tax Regime (FTR) to staggering Minimum Tax Regime (MTR). In addition to 1pc income tax, exporters also pay 0.25pc Export Development Fund and this cost increase cannot be transferred to foreign buyers.

Pakistan Textile Exporters Association Patron-in-Chief Khurram Mukhtar said that with such moves, the government has defeated its own principle of export-led growth by exponentially increasing the cost for the export sector.

He pointed out that the highest growth-oriented textile industry is facing an acute shortage of finances as a significant portion of exporters’ working capital, approx. Rs700 billion, is stuck in the refund regime, resulting in the burden of paying 24pc interest on outstanding refunds.

Published in Dawn, June 25th, 2024

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

From hard to harder

From hard to harder

Instead of ‘hard state’ turning even harder, citizens deserve a state that goes soft on them in delivering democratic and development aspirations.

Editorial

Canal unrest
Updated 03 Apr, 2025

Canal unrest

With rising water scarcity in Indus system, it is crucial to move towards a consensus-driven policymaking process.
Iran-US tension
03 Apr, 2025

Iran-US tension

THE Trump administration’s threats aimed at Iran do not bode well for global peace, and unless Washington changes...
Flights to history
03 Apr, 2025

Flights to history

MOHENJODARO could have been the forgotten gold we desperately need. Instead, this 5,000-year-old well of antiquity ...
Eid amidst crises
Updated 31 Mar, 2025

Eid amidst crises

Until the Muslim world takes practical steps to end these atrocities, these besieged populations will see no joy.
Women’s rights
Updated 01 Apr, 2025

Women’s rights

Such judgements, and others directly impacting women’s rights should be given more airtime in media.
Not helping
Updated 02 Apr, 2025

Not helping

If it's committed to peace in Balochistan, the state must draw a line between militancy and legitimate protest.