ISLAMABAD, Dec 1: The government has postponed till July 1, 2002 further reduction in duty drawback rates to facilitate exporters who were faced with economic crunch due to new emerging realities of the region after US-led coalition’s war on terrorism.

The deduction in the duty drawback rates, which was due from January 1, 2002 and April 1, 2002 had been held in abeyance, a senior official in the CBR told Dawn on Saturday.

Justifying the decision, the officials said that due to the impact of prevailing situation on the country’s export and following the persistent demand of the exporters, the government has frozen the lowering of duty drawback rates till October 1, 2002 to provide some relief to the exporters, who were facing cancellation of their orders from US and other countries following the declaration of the region as war risk area.

The cut in the duty drawback rates, which would come into force from July 1, 2002 would cover items relating to textiles, leather, fabrics, engineering, spare parts and other miscellaneous goods.

Exports declined by 20.98 per cent during Sept11—November 10, 2001 to 1$ billion against $1.26 billion during the same period last year. Similarly, the total number of consignments sent abroad decreased from 76,551 to 45, 515 this year, down by 40.54 per cent.

To this effect the CBR has issued four identical notifications here on Saturday by making further amendments in its budgetary notifications No SROs 412, 413,414 and 414, respectively.

According to the notifications further likely cut in the duty drawbacks rates would takes place in two phases- one from July 1, 2002 and the next cut would be from October 1, 2002.

The duty drawback rates applicable since October 1, 2001 would continue to be effective till June 30, 2002.

It may be added that in the budget 2002, the government had reduced the duty drawback rates by 25 per cent from July 1, 2001.

The notifications read as: “in the aforesaid notifications, throughout the schedule, (a) in column (3), for the words and figures “From 01.10.2001 to 31.12.2001”, wherever occurring, the words and figures “From 01.10.2001 to 30.06.2002” shall be substituted; (b) in column (3), the words and figures “From 01.01.2002 to 31.03.2002”, wherever occurring, and entries relating thereto in column (4) shall be omitted and in column (3), for the words and figures “From 01.04.2002 onwards” wherever occurring, the words and figures “From 01.07.2002 onwards” shall be substituted”.