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By
Fibre2Fashion
Published
Jan 11, 2017
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Pakistan announces Rs 180bn package to boost exports

By
Fibre2Fashion
Published
Jan 11, 2017

The Government of Pakistan has announced incentives worth Rs 180 billion to boost the country’s exports. The package includes removal of customs duty and sales tax on import of cotton. Customs duty on man-made fibres other than polyester has also been scrapped. The package is applicable for an 18-month period from January 1, 2017 to June 30, 2018.


The package announced by the Prime Minister is the country’s biggest trade enhancement package and most of the incentives are related to exports


Under the package, sales tax levied on import of textile machinery stands abolished. Moreover, new duty drawback rates have been announced. These will be 7 per cent for textiles and garments, 6 per cent for made-ups, 5 per cent for processed fabric, and 4 per cent for yarn and grey fabric.

Announcing the trade initiatives, Prime Minister Nawaz Sharif said that the package would help achieve the objective of export-led growth.

The package announced by the Prime Minister is the country’s biggest trade enhancement package and most of the incentives are related to exports, commerce minister Khurram Dastagir Khan told reporters after the announcement.

“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 per cent growth in exports during next fiscal year 2017-18 as compared to the ongoing financial year,” Khan said. 

He said the package would increase Pakistan’s exports by $2.5 to $3 billion by the end of June 2018.

Pakistan’s total exports declined by more than 12 per cent from 2013 to 2015, according to data from the Pakistan Bureau of Statistics.

In the first half of current fiscal 2016-17, Pakistan’s total exports dropped 3.82 per cent to $9.912 billion compared to $10.306 billion in the corresponding period of previous fiscal.

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