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US firms back 80/20 EPZ rule
['Shahbaz Rana']
The Express Tribune
US exporters have raised concerns about the withdrawal of the 20% quota and have directly approached IMF Mission Chief Iva Petrova.
Under the EPZ Act of 1980, the authority can establish these zones with approval of the federal government.
EPZA has already moved a proposal in line with the IMF condition to the FBR to abolish the 20% quota from October 1.
Under the IMF deal, Pakistan was required to undertake an assessment of each SEZ and EPZ to see whether any distortions were created by these units.
"We are deeply concerned, however, that eliminating the 80/20 rule would work against those objectives by jeopardising existing investments, eliminating jobs, reducing exports and foreign exchange earnings, and disrupting a critical part of the global textile circular economy," SMART said.