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Islamabad: A delegation from the Pakistan Carpet Manufacturers and Exporters Association (PCMEA) called on Federal Finance Minister Muhammad Aurangzeb and Federal Commerce Minister Jam Kamal Khan to discuss concerns about serious problems at the Torkham border and the State Bank’s circular FE 2/2023.
Federal Defense Minister Khawaja Muhammad Asif was also present.
The delegation was led by Patron-in-Chief of PCMEA Abdul Latif Malik, Chairman Mian Atiq ur Rehman, senior leader Ijaz Butt, Usman Ashraf, and Major (Retd) Akhtar Nazir. The meeting was also attended by President of the Sialkot Chamber of Commerce and Industry Ikram ul Haq and others.
The Patron-in-Chief of the PCMEA, Abdul Latif Malik, and Chairman Mian Atiq ur Rehman informed the Federal Minister for Finance, Muhammad Aurangzeb, and the Minister for Commerce, Jam Kamal Khan, that the handloom carpet industry has played a key role in generating valuable foreign exchange for Pakistan. However, the industry has been neglected for several years, and its exports have been declining due to unresolved issues. The leaders briefed the federal ministers in detail about the obstacles at the Torkham border for the import of partially finished raw materials from Afghanistan. They said that this situation, which has been ongoing for several months, has prevented manufacturers and exporters from fulfilling foreign orders and exporting them according to agreements. This is not only damaging our reputation but also leading to a further decline in exports.
PCMEA delegation informed the federal ministers about the difficulties faced by exporters due to the State Bank of Pakistan’s circular FE 2/2023. They stated that frequent technical issues cause delays in receiving export proceeds beyond the stipulated time, resulting in unreasonable penalties ranging from 3 to 9 percent. The circular imposes a 3 percent penalty for delays exceeding 30 days, 6 percent for delays between 31 and 60 days, and 9 percent for delays beyond that. They demanded the immediate withdrawal of this circular, arguing that the heavy penalties are imposing an unnecessary financial burden on exporters.
Federal Minister for Finance Muhammad Aurangzeb and Federal Minister for Commerce Jam Kamal Khan stated that all industries that generate valuable foreign exchange for Pakistan through exports are of paramount importance.
Minister for Finance Muhammad Aurangzeb assured that the issues and difficulties raised by the PCMEA delegation, including the Torkham border, will be addressed promptly to ensure that exports are not hindered. He mentioned that Prime Minister Shehbaz Sharif has explicitly instructed that the government must resolve the problems faced by exporters and provide them with necessary facilities to boost exports. The government openly acknowledges that Pakistan’s economic challenges cannot be overcome without increasing exports.
Minister for Commerce Jam Kamal Khan stated that the PCMEA delegation has already met and engaged in a detailed discussion regarding the issues. He expressed confidence that they will continue to collaborate with industry representatives to resolve these matters as soon as possible.
