Daily Times

KARACHI: Indolent conduct of ministries of Finance (MoF) and Commerce (MoC) and lethargic approach of Federal Board of Revenue (FBR) for not taking prompt steps to do away with their own follies have inflicted millions of dollar export orders loss to leather sector at 3-day Hong Kong Asia Pacific leather fair, concluded on Saturday.

“Despite several reminders and letters to secretaries of MoF, MoC and FBR officials owing to non applicability of incentive package announced by prime minister and inclusion of HS Codes, 4112.0000/4113/1000/4113.9000 /4107.1200/4107.9200/4107.9100/4302.1910/4302.1990, which have inadvertently been excluded by MoC, the high ups remained unmoved”, lamented executive members of Pakistan Tanners Association (PTA).

The matter was shared with secretary MoF and also with MoC before the commencement of Hong Kong trade fair to take prompt action for inclusion of missed 8 HS Codes or at-least make PTA oral assurance that all missing Codes would be amended so that PTA’s 65 member participants could offer competitive prices to their valued foreign buyers with 5 percent incentive edge to get orders at the fair, but all went in vain, Anjum Zafar and Agha Saiddain of PTA remarked.

Due to this act, efforts of 65 PTA member exporter participants remained stood handcuff at the event.

PTA members have lost the great export potential opportunities owing to sad affairs of these prime federal bodies.

“We were in constraints and could not quote competitive prices and have lost orders to participating competitors-Brazil, Argentina, India, Bangladesh and others besides in general next six months export orders booking have also been vanished in particular”, they deplored.

Interestingly, SRO was issued bearing 62, on February 2017, instead three most non-important HS Codes were incorporated in, which relates to hardly one to 2 percent of the industry only, resultantly 98/99 percent manufacturers of exporting finished tanned leather have not been able to get any benefit.

On PTA’s immediate intervention, MoC admitted its mistake and prepared a summary duly approved by its secretary and submitted to MoF but we were told that even though it was an anomaly but it has to be approved by finance minister for issuance of revised SRO for incorporation of missed 8 core HS Codes, they informed.

We have lost great export potential opportunities in Hong Kong which could be in millions of dollars and certainly final resort to bring more negative impact on export of leather sector which is already declined more than 6 percent t0 $8.2 billion from July 2016 to February 2017.

PTA appeals PM Nawaz Sharif and Ishaq Dar, Finance Minister to look into this matter for the final approval to the summary for inclusion of remaining 8 HS Codes without any further delay.