Pakistan Economy Watch (PEW) on Saturday lauded the move of the government to automate the export rebate and duty drawback system which will reduce complaints and improve exports.
Payment of customs rebate and drawback of local taxes and levy without human involvement immediately after realisation of export proceeds from the country will enable exporters to play their role in national development with peace of mind, said Chairman Brig. Muhammad Aslam Khan (Retd).
He said that the new system will automatically transfer the amount to the account of exporters adding that the transparency will encourage twenty-six sectors of the economy to increase their exports while encouraging SME sector to expand their export operations.
Aslam Khan said that remittances play a very important role in the economy and decision to waiver withholding tax on the same from July 01 will discourage the illegal transfer of funds and encourage legal procedure which will support forex reserves.
He said that remittances have increased by 5.37 percent in the first eight months of the current fiscal which is a welcome development.
However, he cautioned that coronavirus has damaged economic activities across the world including the countries from where Pakistan receives worker remittances.
The countries from where Pakistan receives billions of dollars as remittances include Saudi Arabia, UEA, US, UK etc. which are facing virus issues and oil price collapse.
The global economic scenario can leave many Pakistanis unemployed which can negatively impact remittances and put pressure on forex reserves, therefore, government should make a proper strategy without delay, he demanded.
