Overview
- PHMA publicly urged the government on Monday to delink export rebates from year-on-year incremental growth, arguing the rule would penalize exporters who cannot raise volumes because of factors beyond their control.
- The government’s performance-based rebate, as reported, would pay 1 percent on incremental export value for up to 10 percent annual growth and 2 percent for growth above 10 percent.
- PHMA proposed a two-tier system that would guarantee a basic rebate to offset structural cost disadvantages and add a smaller performance bonus for genuine incremental growth.
- Industry leaders listed domestic constraints that limit growth potential: high electricity and gas tariffs, elevated interest and markup rates, rising production costs, delayed tax and duty refunds, liquidity shortages and frequent policy changes.
- The trade bodies have asked for formal consultation, stable industrial policy, long-term export financing and faster refunds to protect jobs and Pakistan’s foreign-exchange earnings while the government’s response remains unreported.