Govt doles out Rs.35 billion refunds to exporters in one go
- For the first time in Pakistan, the government has doled out 35 billion refunds to exporters in one go.
- Economic team members of the government are sensitive to the problems of the business community and are determined to provide relief to the business community.
- The exports will surge more because the export industry has been extended the provision of gas at $6.5 per MMBtu and electricity at 7.5 cents per unit.
This major step has never been taken before in the history of Pakistan to pay the mammoth amount of Rs.35 billion refunds to the exports in one go.
The government gave a clear message to exporters that it stands with the business community to place the country on way to high trajectory export growth.
The news was confirmed by Dr. KhaqanNajeeb, Adviser on Finance Division, he said:
“This major development shows that the economic team members of the incumbent government are sensitive to the problems of the business community. They are determined to provide relief to the business community not only to increase economic activities in the country but also to jack up exports.”
While confirming the news, he told:
“Government has cleared all the verified claims of refunds amounting to Rs.35 billion pertaining to duty drawback schemes on May 31, 2019.”
Dr. Najeeb said that the government has made a record cash payment of Rs.50 billion in toto during the fiscal year 2019 to exporters under the duty drawback scheme.
The Adviser said that Rs.24 billion was initially allocated for these payments in the fiscal year 2019. In order to resolve the liquidity problems of exporters, the government provided an extra Rs.26 billion through a supplementary grant in June 2019.
“Government’s historic effort will pave the way for increasing exports to earn the much need foreign exchange,” Dr. Najeeb added.
He said that Pakistan has entered in new regime by doing away with the SRO 1125 (zero-rating). From now onwards, the government will ensure the payment of the refund smoothly to the exporters to avoid any kind of liquidity crisis.
In the last few months, exports of the country have increased in quantitative terms, he told. Furthermore, the exports will surge more as the export industry of textile, carpet, leather, sports and surgical has been extended the provision of gas at $6.5 per MMBtu and electricity at 7.5 cents per unit.
It is confirmed that the government has paid Rs.35 billion to the exporters. The business community is really thankful to Dr. HafeezShaikh, Adviser to Prime Minister on Finance, Revenue and Economic Affairs. It is a commendable step by the government and would help ease the liquidity crisis of the exporters.