FPCCI optimistic while submitting pre-budget proposal

12 May '08

3 min read

Although budget date for Pakistan is yet to be finalized, the textile industry is gearing up to make it big this time. Industry players are hoping that the upcoming budget would give relief to the sector, as it is going through a rough phase, due to rise in prices of raw material, energy prices, and threats from neighbouring countries like India and China.

Federation of Pakistan Chamber of Commerce and Industry (FPCCI) has recently submitted a Pre-Budget Proposal for the year 2008-09 to Mr Abdullah Yousuf, Secretary General, Revenue Division & Chairman, Federal Board of Revenue.

This year FPCCI has given special importance to inflation controlling and investment enhancement strategies in the budgetary proposals. In the budget proposals FPCCI emphasized on the sustainable development of the country, and the investment promotions and control over inflation were specially focused.

• Dyes and chemicals for textile industry should be exempted from duty to avoid crises in the revenue generating sector of the economy. Textile is the major contributor in GDP. In order to reduce down factor cost captive power Generator accessories and essential parts for weaving should be exempt from custom duty. It will support production and will increase export hence foreign inflow of capital.

• We must focus on export of textile, leather garments, sport goods, these sectors of economy have potential to earn from abroad.

• Due to crises in textile sector, withholding tax on export proceeds be suspended for a period of 2-years.

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