Sub-committee set up to tackle exporters refund issues

ISLAMABAD: The government on Friday set up a committee of senior officials to resolve the cash flow issues being faced by the exporters due to stuck sales tax refunds.

Finance minister Shaukat Tarin also directed the Federal Board of Revenue (FBR) that refunds requiring provincial government’s verification must be given on an interim basis subject to future adjustments.

The minister held a meeting with a delegation of exporters. Minister for Industries and Production Khusro Bakhtyar, Federal Minister for National Food Security & Research Fakhar Imam, Advisor to the PM on Commerce Abdul Razak Dawood, SAPM on Finance and Revenue Dr. Waqar Masood, Governor State Bank of Pakistan Dr. Reza Baqar, Chairman FBR, Secretary Petroleum, Secretary Commerce and other senior officers participated in the meeting.

“Tarin constituted a sub-committee comprising of representatives from the ministry of Commerce, FBR and the State Bank of Pakistan (SBP) to sort out such matters at an accelerated pace,” a statement issued after the meeting said.

“The underlying rationale is to ensure timely payments for exporters amid cash flow crunch.”

Tarin reiterated his unflinching support to the exporters and encouraged them to come up with a well-rounded proposal enabling government for better facilitation and timely support amid Covid-19 and in post-Covid scenario.

He urged to adopt a forward looking approach for enhancing export earnings to reduce trade deficit.

“The minister directed to find a win-win situation with reference to protracted issues for taking our value-added exports to the next level and also emphasised the need for robust and sustained growth in exports on immediate basis,” the statement said.

Tarin appreciated the commerce ministry, ministry of industries and production and the SBP for their outstanding support and timely interventions for the small and medium industries amid Covid-19.

While responding to queries related to the current energy requirements, the minister stressed the need for load management by switching to alternate fuel options during peak demand period.

He directed to form a working group comprising of representatives from respective utility organizations for a prompt action to fulfil energy requirements on real-time basis, in respective areas.

The PM advisor Dawood commended exporters role for putting exports on high growth trajectory during testing times due to Coronavirus pandemic.

It was decided that meeting with a delegation of exporters will be held on regular basis to review issues faced by them.