ISLAMABAD, Oct 27: The government has decided to help increase the exporters’ liquidity by assuring to clear their Rs12 billion refunds by December 31 this year.
“The Central Board of Revenue (CBR) has been asked to accelerate refunds, and pay Rs6 billion in November and another Rs6 billion in December to exporters so that their liquidity problem could be eased out to some extent,” said Minister for Finance Shaukat Aziz.
Speaking at a joint news conference with Minister for Commerce Abdul Razak Dawood here on Saturday, Mr Aziz said that a decision has also been taken to defer Rs2 billion duty drawbacks for six months with a view to helping exporters to have sufficient liquidity.
Mr Razak Dawood said that liquidity was a major problem of the exporters which needed to be addressed by the government.
Responding to a question, the commerce minister said that efforts were also being made to get war risk insurance charges reduced. “We are in touch with Lloyds company and underwriters association to reduce tariffs for Pakistan,” he added.
Similarly, he said that the government was negotiating with shippers for reducing the increased freight charges for Pakistani exports.
Asked about the losses estimated so far due to September 11 terror attack in America, Razak said that they were still being calculated. “The situation is still pretty fluid, therefore, I can not tell you the exact figure of losses to exports,” the commerce minister said.
But he said he still maintained that there would be a roughly 1.4 billion dollar loss to Pakistan’s exports during the current financial year.
To a question he said that he was happy that the ministry of finance had made a timely intervention and directed the CBR to clear the refunds of the exporters. “This decision will greatly help the exporters to make up the expected shortfalls in exports till June 30 next year.”
He said export financing was very important to improve the countries’s exports. He said he had held a meeting with the exporters and assured them of all government’s possible support.
Dawood said that there was no reduction in the export of towels and bed sheets, etc. “The real decline has been registered in knitting and garment sectors,” he said.
He said that State Bank of Pakistan was also extending all possible facilities to the business community specially the exporters to resolve their problems arising out of September 11 incident.
APP adds: Finance Minister Shaukat Aziz said that foreign exchange inflow has recorded improvement since last few weeks which has resulted in appreciation of Pakistan rupee.
Shaukat said the country’s economic managers had a meeting with President General Pervez Musharraf in the chair here on Saturday, which was attended by Finance and Commerce Ministers, Governor State bank of Pakistan, secretary finance, secretary commerce and the chairman, CBR. The meeting updated the President about the economic situation, exchange rate, exporters’ problems and other economic matters.
The Minister said that gross foreign exchange reserves were hovering over $3.5 billion including cash reserves around $1.95 billion which was the ever highest level.
The finance minister briefed newsmen about his meetings with the Prime Minister of Netherlands, Wim Kon, recent visit to France and meetings with French Finance Minister, President Paris Club and top echelon of International Monetary Fund.
Shaukat Aziz stated that he was proceeding to Japan tomorrow as special envoy of President General Pervez Musharraf where he would call on Japanese Prime Minister, Finance Minister, government officials and representatives of Diet, Japanese Parliament.
Continuing, the minister said he would explain to Japanese government about debt strategy, carved out by Pakistan and seek their support for sustainable solution of the debt problem. The IMF would meet on December 5 to consider Poverty Reduction and Growth Facility.
The finance minister told newsmen that Netherlands granted waiver of $8 million in two years against debt repayment, which would help save Pakistan worth $16 million during this period.