Government announces Rs. 180 billion package to boost exports

The government has announced the country's biggest export package worth Rs 180 billion to enhance foreign trade. The package envisages abolition of customs duty and sales tax on import of cotton. Similarly, customs duty on man-made fibre rather than polyester and sales tax on import of textile machinery has also been abolished.

The duty drawback rates under this package entail  7% for textile garments,  6% for the textile made ups, 5% for processed fabrics and 4% for yarn and greige fabrics. This package will continue for the period of 18 months from 1 January 2017 to 30 June 2018. Under the package, sales tax, customs duties on import of textile machinery and cotton have been abolished.  The package would help achieve the objective of export-led growth.

Khurram Dastgir Trade Minister said that only those exporters could avail this opportunity, who report an increase in exports of more than 10% in the fiscal year 2017-18 comparable to 2016-17. The Minister hopes for a $3 billion dollar increase in two years after implementation of this package.

Under this package, the exporters will be liable to increase exports by 5% from January to June 2017 and then by further 10% in the financial year 2017-18. This package would generate employment opportunities and revive closed factories of the country.

There will be no condition on getting duty drawback in first six months (January to June) of the scheme. However, exporters will have to record 10% growth in exports during the next fiscal year 2017-18 as compared to the on-going financial year.

The package would enhance the country’s exports by $2.5 to $3 billion by the end of June 2018. Prior to the incentive package, the government had already reduced the power tariff for the industries from Rs 15-16 per unit to Rs 11 per unit. Similarly, the government is providing uninterrupted power supply to the industries in the country.

The minister said the government had already given zero-rated facility to five export sectors in the budget. The government would give the duty drawback facility through State Bank of Pakistan.

 

 
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