Meeting PFMA Delegation with Ministry of Commerce

Meeting PFMA Delegation with Ministry of Commerce on 02-10-2018


  1. 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.


  1. Release of DLTL Claims vide SRO 1248(1)/2017

All pending amounts of DLTL will be activated and start paying from

November onward.

  1. 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.

  1. 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.

  1.    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.

  1. 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



  1. 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.

  1. 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.

  1. 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.

  1. Participation in More International Exhibitions
    TDAP will offer different fairs on more subsidized rates. We asked to include

market of South America and Australia.

  1.   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)

Secretary General


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