Infrastructure Development Cess on Imports & Exports FPCCI Denounces Anti Trade & Industry Measures Atif Ikram Sheikh, President FPCCI

Karachi: Mr. Atif Ikram Sheikh, President FPCCI, has strongly denounced the recent decisions by Khyber Pakhtunkhwa (KPK) and Balochistan governments to impose infrastructure development cess (IDC) on not only imports but exports as well. These are anti-business and anti-export measures; and, FPCCI, being the apex body, is receiving feedback from all chambers, associations and trade bodies from across Pakistan to advocate reversal of these counterproductive measures, he added. 

Mr. Atif Ikram Sheikh explained that international export markets are very competitive; and, any change or addition in cost
of production through duties, taxes or cess on temporary imports; i.e. raw materials and exports have direct detrimental
effects on fulfillment of export orders in a profitable, timely and competitive manner.

Mr. Atif Ikram Sheikh elaborated that FPCCI has always been against undue, unfair and counterintuitive infrastructure development cess (IDC) on imports; but, now the provincial governments have gone a step further and have imposed IDC on exports as well. Balochistan has levied 1.15 percent; on both imports and exports; plus 1 paisa per kilometer. Whereas, KPK has imposed 2 percent on both imports and exports, he added.

FPCCI Chief has demanded immediate reversal of IDC from all provinces; and, has drawn attention of Prime Minister Shehbaz Sharif and special investment facilitation council (SIFC) to the same. This is against national interest to make country’s exports expensive, he added.

Additionally, to enhance export competitiveness of the country, FPCCI Chief proposed that the country needs renewed and effective temporary economic relief facility (TERF); export finance scheme (EFS) and long-term financing facility (LTFF) to boost economic activities, investments, industrialization and exports.

Mr. Saquib Fayyaz Magoon, SVP FPCCI, reiterated that Pakistan already has the highest cost of doing business in the region due to 17.5 percent key policy rate; electricity tariffs coupled with IPPs capacity charges and gas prices. The least the provincial governments can do is to not aggravate our cost of doing business and ease of doing business challenges any further, he added.

Brig Iftikhar Opel, SI (M), Retd.
Secretary General