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HomeBusinessGovt to facilitate raw materials' acquisition easy for exporters: Dar

Govt to facilitate raw materials’ acquisition easy for exporters: Dar

The Federal Minister of Finance and Revenue, Ishaq Dar, stated on Monday that the government will make it easier for all exporters to acquire the raw materials, components and accessories they need to satisfy their demands including five previously zero-rated export-oriented industries.

Dar stated on Twitter, “Export industry is one of our government’s main priorities.”

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In order to satisfy their export requirements, he said, “Five (previously) zero-rated export-oriented industries and all other exporters would be provided total facilitation for the import of raw materials, components and accessories.”

 

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The announcement comes as the country battles a dire foreign exchange crisis and industries notably exporters struggle to have their Letters of Credit (LC) issued. At Karachi port, thousands of containers containing raw materials, food goods and medical supplies have been stalled.

Banks are refusing to grant fresh letters of credit for importers due to a scarcity of critical dollars which is hurting an economy already under pressure from high inflation and weak growth.

The State Bank of Pakistan’s (SBP) foreign exchange reserves this week fell to $4.34 billion, the lowest level in over nine years, as more than $8 billion in liabilities were due alone in the first quarter.

Analysts estimate that the stockpiles would cover imports for around a month. With the currency falling and inflation at decades-high levels, Pakistan’s economy has collapsed amid a brewing political crisis. Devastating floods and a severe energy deficit have added to the strain.

The plight of Pakistan’s textile producers, who produce over 60 percent of its exports, has been made worse by the currency crisis. They have suffered as a result of the country’s energy problems, flooding damage to cotton fields, and a recent tax increase.

The Karachi port is currently experiencing a backlog of imported raw supplies, including dyes, buttons, zippers, and equipment replacement parts, according to certain firms.

 

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