Press Release

Remedial measures, before federal/provincial budgets

The Lahore Chamber of Commerce & Industry has urged the National and Provincial Assemblies to take remedial measures through quick consultation with the business community well before the approval of Federal and Provincial Budgets for the financial year 2019-20.“We have to rethink on some aspects of Federal and Provincial Budget to generate economic opportunities”.

LCCI President Almas Hyder, Senior Vice President Khawaja Shahzad Nasir and Vice President Faheem-ur-Rehman Saigal said that rectification in Federal and Provincial Budgets can be made without harming the government’s endeavors aimed at economic revival of the country. These remedies would be equally beneficial for the governments and the private sector.

They said that withdrawal of zero-rating regime from the export oriented sectors is a major area of concern for the businessmen. They feared that withdrawal of zero-rating facility without a proper and pre-tested mechanism would bring exports under immense pressure. He said that that export revenues will also be affected by the withdrawal of zero rating facility and this will potentially create a balance of payment crisis for the economy.

They said that SRO 1125 should not be withdrawn otherwise capital of exporters would be dried. “Country needs foreign exchange and that is possible only through export-led growth”, the LCCI office-bearers added. They said that export sector needs support

Pakistan needs non-conventional strategies and to be an effective part of the international economic alliances to win the international trade war.They said that government should introduce an automatic and efficient system of Refund Payments whereby 75% of the Refunds should be paid through the Bank upon the issuance of the attested copy of Bill of Lading while the remaining 25% of Refunds should be paid through the Banks against the export proceeds after 30 days.

About Punjab Budget, the LCCI office-bearers said that more investment in Public Sector Development Programs. “Still time is available as budget is yet to be approved. Punjab government has Rs. 200 to 300 billion surplus and some part of it should be added to PSDP”, they added.