ADVERTISEMENT
Friday, July 25, 2025
No Result
View All Result
The AZB More Than Just News
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION
No Result
View All Result
Daily The Azb
No Result
View All Result
Home Business

FPCCI Demands level playing field for Export Finance Scheme for local Industry

Mr. Atif Ikram, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI),

News Desk
December 12, 2024
FPCCI Demands level playing field for Export Finance Scheme for local Industry
Share on FacebookShare on Twitter
Advertisements

Karachi : Mr. Atif Ikram, President of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), has called upon the federal government to immediately provide level playing field in Export Finance Scheme (EFS) to its pre-Finance Act 2024 form. The Act’s amendments, which withdrew sales tax exemptions and zero-rating on local supplies used for export manufacturing, have adversely impacted the textile industry and related sectors.

Mr. Ikram expressed grave concerns over the widespread closure of spinning mills and the significant losses being faced by the industry. He noted that the misuse of EFS—through the diversion of imported cotton and blended yarns exempted from sales tax and duties into the domestic market—has resulted in substantial losses to the national exchequer and undermined the competitiveness of local manufacturers.

Advertisements

“Our appeals have remained unaddressed,” he stated, highlighting the dire consequences of inaction. “The domestic industry is on the brink of collapse, with over 40 spinning mills already forced to shut down, 60 more on the verge of collapse.” He warned that the ripple effects could devastate upstream sectors such as weaving and processing.

The President FPCCI emphasized that the withdrawal of zero-rating for local supplies used in export manufacturing was intended as a revenue-enhancing measure but has backfired. It has led to a reduction in business activity, further shrinking the government’s revenue base. He called for a balanced and judicious approach to policymaking that protects both the industry and the national exchequer.

Key Issues Raised by FPCCI:

  1. Misuse of Duty-Free Imports: A significant portion of duty-free imported yarn under EFS is being sold domestically, causing unfair competition for local manufacturers.
  2. Impact on Employment: The closure of spinning mills has displaced thousands of textile workers, exacerbating unemployment.
  3. Challenges for Domestic Manufacturers: Local manufacturers are compelled to pay an 18% sales tax on inputs, which is refundable only after prolonged delays. This creates liquidity issues and hampers production.
  4. Lack of Oversight: The current system lacks stringent checks to prevent fraudulent practices, resulting in revenue losses and distortion of the market.

“Pakistan’s textile sector once held a unique position globally, rivaling major exporters like India and China,” Mr. Ikram said. “However, it is unfortunate that today, these strengths are being undermined by ill-conceived policies.”

Recommendations by FPCCI:

  • Enhanced Oversight: A rigorous re-evaluation of all EFS beneficiaries to ensure compliance and transparency.
  • Penalties for Misuse: Strict action against those engaged in fraudulent activities or misuse of the scheme.
  • Support for Domestic Industry: Immediate restoration of zero-rating and tax exemptions for local supplies used in export manufacturing.

Mr. Atif Ikram concluded with a strong appeal to the government to take urgent and decisive action. “We must protect Pakistan’s domestic industries and restore the level playing field needed for sustainable growth and employment creation,” he urged.

Advertisements
News Desk

News Desk

Welcome to our web desk! We're a dedicated team of digital enthusiasts passionate about delivering timely and engaging content to our online audience.

Related Posts

MG Motors and Bank Alfalah Launches a ‘Freedom Package’ with an Instant Vehicle Delivery and Auto Financing
Business

MG Motors and Bank Alfalah Launches a ‘Freedom Package’ with an Instant Vehicle Delivery and Auto Financing

July 25, 2025
The ombudsman Secretariat shall sign the M.O.U with Pakistan Red Crescent Sindh for the Humanitarian Assistance to the Most Vulnerable in Sindh.
Headline

The ombudsman Secretariat shall sign the M.O.U with Pakistan Red Crescent Sindh for the Humanitarian Assistance to the Most Vulnerable in Sindh.

July 24, 2025
11th ISEM Solar Exhibition 2025 Opens at Expo Center Karachi
Headline

11th ISEM Solar Exhibition 2025 Opens at Expo Center Karachi

July 24, 2025
SHCC decided to take action against unregistered Healthcare Establishments Board of Commissioners approved PKR 15 million penalty against 224 quacks
Headline

SHCC decided to take action against unregistered Healthcare Establishments Board of Commissioners approved PKR 15 million penalty against 224 quacks

July 24, 2025
Altaf Hussain Discharged from London Hospital After Recovering from Serious Illness
Headline

Altaf Hussain Discharged from London Hospital After Recovering from Serious Illness

July 24, 2025
Pak pharma sector has limitless potential in Africa.
Headline

Pakistan’s Pharmaceutical Exports Surge 34%, Marking Highest Growth in Two Decades

July 24, 2025
How to Watch the UEFA Women’s Euro 2025 Final Live Online — Free Streaming Options
Headline

How to Watch the UEFA Women’s Euro 2025 Final Live Online — Free Streaming Options

July 24, 2025
Karachi Couple Caught Distributing Fake Currency in Abbottabad; Rs136,000 in Counterfeit Notes Seized
Headline

Karachi Couple Caught Distributing Fake Currency in Abbottabad; Rs136,000 in Counterfeit Notes Seized

July 24, 2025
Punjab to Launch E-Taxi Scheme in August — Special Quota for Women Drivers
Headline

Punjab to Launch E-Taxi Scheme in August — Special Quota for Women Drivers

July 24, 2025
M-Tag Made Mandatory for All Vehicles Entering Islamabad, CDA Announces
Headline

M-Tag Made Mandatory for All Vehicles Entering Islamabad, CDA Announces

July 24, 2025
Next Post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *


Most Popular

PM Youth Laptop Scheme 2025: HEC Releases Merit List – Check Your Eligibility Online Now!

Improving Pakistan’s Response to Gender-Based Violence – A discussion on implementation of the Anti-Rape Act 2021.

Yinyleon & her husband most viewed amateurs 2022 on adult site.

Reckitt Benckiser (RB) & partners to revolutionize access of health & hygiene across 1 million rural households, backed by the UK Government

Mehwish Salman Ali Elected President of CxO Global Forum USA Chapter

Must Read

Business Leaders Unite
Headline

Business Leaders Unite to Tackle Economic Crisis: Aneeq Ahmed’s Call for Joint Efforts

September 4, 2023
Syed Tahir Rizvi receiv the second ‘’Who’s Who Recognition of Achievement’’ Award
Headline

Syed Tahir Rizvi receiv the second ‘’Who’s Who Recognition of Achievement’’ Award

December 30, 2018
The Azb is a 24/7 online news platform that covers a wide range of topics including business, economics, technology, finance, travel, fashion, and lifestyle.

Quick Links

  • Home
  • About us
  • SCI-TECH
  • Live TV
  • Banking

Useful Links

  • Videos
  • Reviews
  • Advertorial
  • Photos
  • About us
  • Author
  • Home
  • Latest News
  • Partner
  • Privacy Policy
  • Russian Theatre Group Celebrates Fifth Anniversary in Pakistan.
  • Terms and Conditions
  • The Azb – More Than Just News
  • Contact

© Copyright 2024 theazb. All Rights Reserved.

No Result
View All Result
  • HOME
  • Latest News
  • Business
  • PAKISTAN
  • SPORTS
  • WORLD
  • E-Paper
  • SCI-TECH
  • BANKING
  • ARTICLES
  • OPINION
  • MORE
    • MOBILE
    • TELECOM
    • PERSONALITY
    • HEALTH / EDUCATION

© Copyright 2024 theazb. All Rights Reserved.