SIALKOT (May 11 2003) : The Sialkot Chamber of Commerce and Industry (SCCI) has submitted its proposals for country's budget and trade policy 2003-04 for bringing radical changes in economic and industrial development of the country.
The Chamber has suggested that all exporting units may be exempted from sales tax, all small and commercial exporters who are exporting on zero rate and are not claiming sales tax may also be exempted from all utility bills, sale tax charges.
In order to compete in the world market, it has been suggested to reduce the air and sea freight charges.
The rate of duty drawback is very low and no other facilities are provided to the exporters.
It is suggested to start 10 percent incentive scheme in cash to all exporting units.
At present Export Promotion Bureau is responsible for arranging all international trade fairs and exhibitions and million of rupees are spent on advertisements of these trade fairs and exhibitions which is borne by the government.
To share these expenditure, it is suggested that the responsibility for arranging trade fairs and exhibitions should be given to concerned associations and chambers to organise trade fairs and exhibitions with the help of subsidy to be provided by EPB.
Industrialisation can be promoted in two ways like short term and long term industrial development programme.
Lot of labour potential is available in the country for small and medium industry.
The owners and craftsmen of this industry have not enough financial resources.
It is suggested that commercial banks should be advised to grant loans on 4 percent mark-up.
In addition to this specific facilities should given to industry like surgical instruments, leather, gloves and garments, fabric garments, sports goods, musical instruments, badges, electronic products, sanitary ware and hardware and decorative items.
The promotion of heavy industry is also direly needed and compulsory.
Infrastructure, roads, bridges, railway tracks can only be developed with the help of heavy industry.
It is suggested that all heavy machinery should be allowed to be imported as duty-free.
National language Urdu should be used in all government departments.
The SCCI also suggested changes in DTRE clauses like broad based input list should be acceptable with application.
Exporters will furnish an approximate value of export during the period of exportation of input goods.
The consumption of input goods of accessories is to be determined through existing analysis card system.
The input and output ratio will only be given at the time of export.
The consumption of input goods of chemicals should be determined on the basis of IOCO.
For each item of input goods, wastage should be decided by the Collectorate in consultation with the respective association etc.
The Sialkot Chamber has suggested that refund of all duty drawback and sales tax should be refunded at the time of exports but not at the time of repatriation.
This practice would be helpful in increasing exports by 15 to 20 percent.
Due to the international monetary behaviour, substantial foreign investment is not expected in the budgetary year 2003-04.
Therefore, delegates should approach Pakistanis abroad to establish industries at home and with the assurance that no hurdle will be created in investment.
It is suggested that government should provide surety bonds to foreign investors.
The SCCI suggested that all foreign remittances of overseas Pakistanis should be declared as “Exports of Man Power Commodities”.
The Export Credit Guarantee scheme should be implemented in letter and spirit.