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By
Fibre2Fashion
Published
Jun 6, 2016
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Budget boost for Pakistani textile sector

By
Fibre2Fashion
Published
Jun 6, 2016

Pakistan’s Finance Minister Ishaq Dr has announced a zero-rated tax regime to boost the country’s declining textile exports. The textile sector is the primary manufacturing sector of Pakistan.


Mohammad Ishaq Darhas announced a zero-rated tax regime to boost the country’s declining textile exports.


In his Budget speech, Dar proposed extending the existing scheme on drawback of local taxes for the next year. Technology up-gradation fund scheme for the textile sector has been formulated to benefit SMEs to invest in new technologies to make Pakistan’s exports globally competitive.

He also proposed that duty free import of textile machinery will continue for FY2016-17 and scope would be widened to include more garment specific machinery. This incentive, along with LTFF and TUF, would encourage new investment in textile sector to increase exports.

Dar also announced withdrawal of Customs Duty on man-made fibres. “Concessionary customs duty on the man-made fibers that are not manufactured locally will continue,” he said.

The Finance Minister pr0posed ad Plant Breeders Right Act as a top priority of the government is to ensure provision of quality seeds to growers.

“ For this purpose, it is important to honor scientists with intellectual property rights of varieties they develop. The draft law is ready which will be implemented after approval of the Parliament,” Dar said.

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