The government has approved a Rs 90 billion relief package for export industries. The Economic Coordination Committee (ECC) extended the PM’s Export Package, that would cost the treasury Rs 40 billion annually, for three more years. Furthermore, the committee reduced the electricity tariff by Rs 3 per unit that would cost the national exchequer an additional Rs 50 billion.
The cabinet further removed the non-tariff barriers that were imposed on imports from Afghanistan. The new move will be applicable mainly to agricultural products as bilateral trade between two countries is expected to increase.
The Committee’s Approvals
Overall, the committee gave a go-ahead to following proposals;
- Extension of PM’s Export Package for three more years at an annual cost of Rs 40 billion.
- Reduction of electricity tariff by Rs 3 per unit costing a total of Rs 50 billion.
- Permission to construct a pipeline to Inter State Gas Systems Pvt Limited. The gas pipeline will transmit 700 to 1,200 million cubics per day of high-pressure re-gasified LNG that will be transported to the north.
- Non-tariff restrictions imposed on agricultural imports from Afghanistan withdrawn. The committee also waived sales tax on the PVC and PMC plastic material’s export to Afghanistan.
- Removal of non-tariff barriers on the import of processed food and non-food items.
- Permission to re-export the imported goods without the clearance at the port on zero duties.
- Relaxation of the inspection of used machinery that is being imported. The permission to allow foreign firms to conduct their inspection at Pakistani ports was granted as well.
- Relaxation on the ban on the CNG cylinders and kits’ import. The committee allowed authorized dealers to import the said materials at reduced customs duty.
- Permission to import 50-year-old import vintage cars and duty-free import of new cars up to 1,600cc. The committee also gave the permission to import duty-free three-wheel motorcycles for disabled persons.
The committee also granted permission to import up to five-year-old electric vehicles in a bid to shift towards renewable energy. The electric cars can be imported under personal baggage, transfer of residence, and gift schemes. Fuel-powered vehicles, on the hand, need to be no more than three years old.
Another mega approval was given as the ECC lifted the restriction on sugar exports permanently. However, the government decided to remove the subsidy on sugar exports. The sugar prices in the domestic market might go up as the sugar export increases. The removal of subsidy on this export is expected to help regulate and control the domestic sugar price.