ISLAMABAD, Oct 14: The federal government here on Monday decided to allow import of second-hand machinery aimed at boosting industrialization and job creation.

A high-level meeting with Minister for Finance Shaukat Aziz in the chair decided that an initial depreciation will be allowed on the import of used machinery from the United States, Europe and Japan.

“This was an old demand of the importers and today we decided to accept their demand to allow import of second hand machinery,” said the minister for finance.

He told Dawn that the meeting, which was also attended by federal ministers for communication, commerce & industry, labour, federal secretaries concerned and chairmen CBR and BOI, was of the view that the used machinery specially that of textile could greatly help in enhancing industrial activity.

Aziz said in this regard the Section 23 Clause C of Sub section 5 of the Income Tax Ordinance of 2001 would be amended as quickly as possible.

The finance minister said that different kinds of machinery specially that of textiles have become unproductive due to high cost and labour problems in the United States and other western countries.

“We feel that such machinery could be useful in Pakistan,” he said adding that issue has also been discussed with the authorities of the Overseas Chamber of Commerce and Industry.

Responding to a question, he said that different kinds of machinery which was proving unyielding in the US, West and Japan will be quite economical for Pakistani importers.

He said that one of the major considerations to allow the import of used machinery was that it will help generate more jobs. He said that the government sector was squeezing and now the private sector will have to play a major role in boosting trade and economic activities.

“And we will continue to provide all possible fiscal and non fiscal incentives to have the desired level of industrialization in Pakistan,” the minister for finance said.

Aziz said that the government was in touch with those Pakistani importers who were interested in importing the second hand machinery. The issue, he said, was also discussed with the people concerned when he was in the United States recently.

He said that the officials of the Central Board of Revenue (CBR) were being instructed to facilitate the importers in import of second hand machinery.

The Chairman CBR, he pointed out, who also attended the meeting has been directed to provide all necessary assistance to the concerned people.