PBC concerned over news item

KARACHI: Pakistan Business Council (PBC) CEO Ehsan Malik on Friday voiced his concerns regarding a news item on the likely withdrawal of the Fifth Schedule of the Customs Act.

The PBC, a private sector business policy advocacy forum, was promoting manufacturing under its “Make-in-Pakistan” initiative. The purpose of this initiative was to create jobs, promote value-added exports, and encourage import substitution.

The Fifth Schedule in the Customs Act, which was introduced in 2013 aims to provide protection to domestic manufacturers and export industries by assuring them concessional tariffs under stringent conditions. Eliminating the Fifth Schedule by impacting the cost of domestic manufacturing would lead to higher inflation, he said.

Manufacturing in Pakistan represents 12.1 percent of GDP, but carries 58 percent of the tax burden. The rate of growth of manufacturing was half that of India, Bangladesh and Sri Lanka. Investment level was also well below the South Asian peers, he added. This is a time when industry needs to invest in capacity and gear up for exports. Withdrawal of the Fifth Schedule will work contrary to these national objectives,” the PBC CEO said.