IMMEDIATE APPROVAL OF FINANCIAL ASSISTANCE ANNOUNCED BY THE GOVT. FOR THE KINNOW EXPORTERS MUST BE ENSURED

BUSINESS

FPCCI & PFVA SENT URGENT LETTERS TO THE MINISTRY OF FINANCE FOR AN IMMEDIATE IMPLEMENTATION OF ANNOUNCED DRAWBACK LOCAL TEXES & LEVIES (DLTL) SCHEME

The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) has stressed upon the Federal Ministry of Finance (MoF) that the exporters who had sustained huge financial losses on export of Kinnow to Russia in year 2016-17 shall be compensated losses by immediate approval of financial assistance of US$ 250 per container announced by the previous Govt. so that the exporters having firm assurance to get DLTL can fully focus on export of Kinnow during the forthcoming season of this fruit . A letter initiated by the Vice President – FPCCI, Waheed Ahmed addressed to the Federal Minister of Finance (MoF), Asad Umer and the Adviser to Prime Minister for commerce & Industry Abdul Razak Dawood has urged the need for an immediate implementation of the DLTL scheme announced by the previous Govt. for financial compensation to the affected Kinnow exporters.
The letter stated that the exporters of Kinnow were highly motivated and encouraged with announcement of financial assistance (DLTL scheme) by the Govt. of Pakistan (GoP) and as a result of that they devotedly work hard and attained an ever highest export volume of Kinnow of 3, 60000 ton in the last Kinnow season. Fear was expressed in the letter that if the announcement of DLTL scheme by GoP is not implemented immediately then not only confidence of the exporters in credibility of GoP would be badly shattered but it is likely to have serious negative impact on achievement of export target of Kinnow during the forthcoming season of Kinnow which is just 7 weeks away! If that happens, this in turn would further create shortage of foreign exchange and hence possibility of severe blow to the already depressed economy can’t be ruled out, a setback the country is just not in a position to afford at this juncture!
Waheed Ahmed has also mentioned in his letter that the honourable Primer Imran Khan is very keen to enhance exports of country and thus timely approval of the DLTL scheme would be a right step at right time in a right direction coinciding with the vision of the Primer. The FPCCI has appealed MoF that keeping the supreme national interest in view, the commitment by the Govt. for extending financial assistance to the affected Kinnow exporters in the form of DLTL scheme must be honoured so that the vital role, the export of fruits and vegetables has been playing in supporting economy of the country can be further strengthened .
Meanwhile, All Pakistan Fruit & Vegetable Exporters, Importers & Merchants Association (PFVA) has also sent letters to MoF , MoC , TDAP ,PHDEC and the President of FPCCI apprising them of serious repercussion on export of Kinnow if the announcement of DLTL scheme by GoP to the exporters of Kinnow is not immediately approved . Although the amount of financial assistance announced was much less than anticipated, merely a meagre mount of US$ 250 per export container to Russia nevertheless this acted as “catalyst” to boost up morale and motivation of the exporters to a high degree leading to attainment of ever highest export volume of 360000 tons . The exporters put in their heart and soul together to achieve this amazing export volume of Kinnow in an anticipation that once they get DLTL of USD 250 per container, it would enhance cash liquidity and that would subsequently help them to achieve even still better results during the next kinnow season but in-ordinate delay in implementation of this announced scheme would have serious consequences on export of Kinnow in the forthcoming season.

According to PFVA , the Kinnow season is just about 7 weeks away and an in-ordinate delay in approval of the DLTL has multiplied worries of Kinnow leading to generation of a negative feeling whether they would get financial assistance well before the season to enthusiastically contribute in meeting higher export target of Kinnow for the year 2018 – 19. If the delay still persists it would put exporters of Kinnow in deep state of shock and dismay as they have already planned and invested heavily accordingly for even achieving bigger export volume in the next season attaching “High hopes” with the commitment of the GoP. If this commitment is not fulfilled, possibility of exporters’ confidence in any future commitments would be badly shattered and state of demoralization would be well beyond imagination! This would badly affect exporters of Kinnow and the country is likely to suffer equally. All sincere efforts on part of the present Govt. to enhance export would also have a serious setback , if the commitment of DLTL by the previous Govt. is not honoured and so happens , restoration of confidence in the credibility of GoP would be a long time affair , hurting this specific trade as well generation of revenue in the form of valuable foreign exchange desperately needed by the country. .

According to PFVA , the professional image of this highly reputed Association would also be tarnished which has repeatedly assured it’s Kinnow exporters about the financial assistance from the GoP after announcement of DLTL scheme and already completed it’s internal process of scrutinization of the claims submitted by the Kinnow exporters for onward submission to the TDAP . It may be worth mentioning here how devotedly the PFVA has been making all possible efforts to enhance export volume of this specific sector and ultimately rich dividend of it’s sincere efforts has been paid when export of this sector increased by 14.5% to US$ 608 million during the year 2017-18. To keep morale and confidence of the exporters in high spirit, it’s of paramount importance to ensure implementation of the DLTL scheme without any further delay!