IMF opposes zero rating, subsidy for export sector
The International Monetary Fund (IMF) has opposed the restoration of zero rating for the export sector thus endangering the provision of such facility for the textile industry as well, reported 24NewsHD TV channel on Monday.
Quoting the sources, the channel reported that during talks with the government of Pakistan for the restoration of its programme, the Fund also opposed the provision of gas and electricity to the industry at cheaper rates.
Similarly, it had also objected to the provision of subsidy to the export sector, the sources added.
Under the textile policy, the government has announced incentives of $6 billion for the sector, but the government does not have the required amount.
Sources elaborated that while on one hand the Ministry of Finance and the Federal Board of Revenue had objected to the incentives offered to the textile sector, the Petroleum and Power Division had also refused to supply cheaper electricity and gas to the industrial sector.
The Economic Coordination Committee (ECC) has formed a special committee with Tabish Gauhur as its member to look into the restoration of zero rating, provision of gas and electricity at cheaper rates and other incentives under the textile policy.
The committee has been asked to submit its report next week.