Govt abolishes 35 per cent L/C margin on auto sector

LAHORE - The government has taken a decision of abolishing 35 per cent L/C margin on auto sector and a formal notification is being issued in a few days in this regard while the mark-up rate will start coming down in the first quarter of the next calendar year.
This was stated by the Minister of State on Finance and Chairman Board of Investment (BoI) Saleem H Mandviwalla while talking to Chinese investors here at Lahore Chamber of Commerce and Industry on Friday.
LCCI President Mian Muzaffar Ali, Senior Vice President Tahir Javed Malik and Vice President Irfan Iqbal Sheikh also spoke on the occasion.
Around 38 Chinese companies including 20 from Islamabad, 17 from Lahore and one from Nothern Areas actively participated in the meeting and presented their point of views on investment scenario in Pakistan.
The Minister said that the interaction with Chinese investors would not only further strengthen the socio-economic relations between the two brotherly countries but would be helpful to the government in evolving its future strategy vis a vis foreign investment.
He said that Agriculture and Industry are the priority areas for the government for foreign investment.
He said that the present meeting is a sequel to President Asif ali Zardari's visit to China and the MoUs signed during the visit would prove helpful in further cementing the trade relations between Pakistan and China.
The LCCI President said that globalization has provided Chinese investors a golden opportunity to relocate their large scale industry to Pakistan to reap the benefits of its most conducive business policies as compared to other regional countries. He said Pakistan is strategically located providing shortest route to China for ME, Africa, Europe.
He said that the balance of trade between the two countries is heavily in favour of China, which requires to be turned into a win - win situation for both the countries.
The LCCI SVP said the govt has prepared a special incentive package for the Chinese companies under Special Economic Zone, which offers exemption of custom duties (on import of machinery/equipment) income tax and sales tax to attract foreign investment from China.