ISLAMABAD: Pakistan will cut taxes on imports of raw materials to spur manufacturing and overall economic growth, Bloomberg quoted Prime Minister Imran Khan’s trade adviser as saying on Monday.
Customs duties on input items needed by pharmaceutical, chemical, engineering and food processing industries will be reduced by 3 percent to 10 percent, Abdul Razzak Dawood, Khan’s adviser on commerce, said in an interview to Bloomberg.
“That will help lower the import of finished goods, encourage local production and put the nation in a position to boost exports,” he said. “Pakistan had ridiculously high duties. The objective is to put Pakistan on par with other countries on trade taxes.”
Bloomberg said the proposal would be part of the federal government’s annual budget for the year starting July 1, by when it targets to achieve a growth rate of 4.8 percent. The nation forecast growth to be 3.9 percent this year after a rare contraction last year. The new budget is scheduled to be presented in the lower house of the parliament on June 11.
“Paring import taxes will be a huge policy shift for Pakistan, given more than 40 percent of its total tax revenue is generated from levies on inbound shipments,” Bloomberg said. “Khan’s government is seeking to end the nation’s reliance in recent years on foreign loans and bailouts, and instead boost industrial productivity and the share of exports in the economy.”
To that end, the administration will extend concessional long-term financing for exports and working capital financing to businesses in the next fiscal year, Dawood told the American publication.
The nation’s exports haven’t grown significantly in the past decade, averaging $23 billion annually. For the next financial year, the government hopes it will be higher than $25 billion.
Pakistan to cut taxes on imports of raw materials to boost growth
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Pakistan to cut taxes on imports of raw materials to boost growth
- Customs duties on input items needed by pharmaceutical, chemical, engineering, food processing industries to be reduced by 3 percent to 10 percent
- Proposal to be part of federal government’s annual budget for year starting July 1 by when it targets to achieve growth rate of 4.8 percent
Pakistani students stuck in Afghanistan permitted to go home
- The border between the countries has been shut since Oct. 12
- Worries remain for students about return after the winter break
JALALABAD: After three months, some Pakistani university students who were stuck in Afghanistan due to deadly clashes between the neighboring countries were “permitted to go back home,” Afghan border police said Monday.
“The students from Khyber Pakhtunkhwa (northwest Pakistan) who were stuck on this side of the border, only they were permitted to cross and go to their homes,” said Abdullah Farooqi, Afghan border police spokesman.
The border has “not reopened” for other people, he said.
The land border has been shut since October 12, leaving many people with no affordable option of making it home.
“I am happy with the steps the Afghan government has taken to open the road for us, so that my friends and I will be able to return to our homes” during the winter break, Anees Afridi, a Pakistani medical student in eastern Afghanistan’s Nangarhar province, told AFP.
However, worries remain for the hundreds of students about returning to Afghanistan after the break ends.
“If the road is still closed from that side (Pakistan), we will be forced to return to Afghanistan for our studies by air.”
Flights are prohibitively expensive for most, and smuggling routes also come at great risk.
Anees hopes that by the time they return for their studies “the road will be open on both sides through talks between the two governments.”
