Meeting PFMA Delegation with Ministry of Commerce on 02-10-2018
- PFMA Delegation comprising of Mr. Farrukh Salim, Ex Chairman PFMA, Mr. Jawad Musaddiq Senior Vice Chairman and Mr. Hassan Ehsan of Service Industries had a meeting with Mr. Abdul Razak Dawood, Advisor of PM on Commerce, Mr. Muhammad Younus Dagha Secretary Commerce and Mr. Muhammad Ashraf DG Trade Policy and other dignitaries from Government at Islamabad on 02-10-2018. Following points were discussed and agreed by Commerce Ministry.
- Release of DLTL Claims vide SRO 1248(1)/2017
All pending amounts of DLTL will be activated and start paying from
- Local Taxes and Levies Drawback vide SRO 711(1)/2018
This DLTL scheme of 3% on regular markets and 2% addition for non-
conventional markets will continue for next three years and there will be no
change in policy.
- Export Rebate Enhancement
On footwear, right now there is rebate of 1.84% and we gave to ministry
examples of India and Bangladesh. PFMA needs to send our rebate working to
Chief Secretary Mr. Muhammad Younas and he and his office will review this
working. Our working says, there should be minimum 5% rebate.
- Reduction of Import Duties
Commerce Ministry is seriously considering to reduce all import duties on
leather sector and its sub components so that exporter can import everything
with no duty or very less duty. In this way, there will be no need to clear things
under special SROs and also no need to register under cumbersome EOU
procedure. Ministry informed that decision will he take before end of this year.
PFMA still needs to send list of all materials to DG trade policy used in
Footwear so that everything is included in it.
- Compensation on Lab Testing Charges
Complete Leather Sector will claim partly Lab Testing charges and PFMA need
to dig out this procedure. This is recently implemented in leather garments
sector and Secretary Commerce promised to include footwear as well in this
- High Tariff for Pakistan in Japanese Market
Spoke about Japan market and its high tariff for Pakistan and its comparison
with our competitors India and Bangladesh. Mr. Abdul Razak promised to work
on FTA with Japan.
- Joint Venture with Chinese Companies
Spoke about JV possibilities with Chinese companies. Ministry informed that
they are revising policy for one window operation and they have invited about
30 Chinese companies in next two weeks time and Leather sector should try to
put up some JVs with them. We will get invitation from ministry.
- Leather Export Promotion Council (LEPC)
It was decided to form a Leather Export Promotion council (LEPC). This will be
representing all 4 sectors of Leather. Commerce Ministry will form this council
and representation will be given to all 4 Associations and government officials
are included as well. There will be complete mechanism of its financing, BOD,
constitution and operation. Ministry of commerce will announce this body
before end of this year.
- Participation in More International Exhibitions
TDAP will offer different fairs on more subsidized rates. We asked to include
market of South America and Australia.
- Trade Policy
Ministry informed that they are making new Trade Policy which will be
announced before end of this year and it will be a consistent policy and they
will stick with this at-least for next 3 years so exporter can work with free mind.
2. We feel that this meeting was different to previous meetings and government seems very much committed to increase exports in all segments including leather segment.
Lt Col Ahmed Fawad Farooq (R)