LAHORE: Although a bit late, the export development package is a good development to a great extent. The new export package coupled with the improvement in the national law and order and energy output would help increase the country’s exports.
These views were expressed by Lahore Chamber of Commerce and Industry Vice- President Nasir Hameed Khan while talking to Customs Today.
He said the package has been worked out in such a way as to minimize the impact of 8 percent rebate that the Indian government gives to its exporters to compensate for the falling prices of commodities in the international market.
He added although a little late, the export development package is a good mix. Pakistani exports are passing through tough times due to increasing competition in a shrinking market. Exports have been showing a declining trend for the past many years, with the textile industry being the hardest hit and the country’s exports peaked during the first year of the incumbent government.
He informed Customs Today that last year, total exports were $20.8 billion, down from around $25 billion in 2013-14. Not only have textile exports from Pakistan suffered, losing about a billion dollars just last year, but other export goods have also fared badly.
There are many hurdles in the way of export growth which needs to be removed, he said adding, that businessmen have for long been complaining against an overvalued Pak rupee vis-a-vis the US dollar and higher wages announced by the government.
He mentioned that the continuing energy crisis is another big issue which needs to be resolved expeditiously and the Export Development Fund needs to be more vigorously used for both product development and aggressive marketing if we want our exports to grow. The hard truth is that the situation will not improve unless we produce more value-added items as part of the global supply-chain.
Nasir Hameed Khan further said that at last the government has come out with a long awaited package of incentives to boost exports which is a good impression.
The package worth Rs180 billion will defiantly provide crucial support to our sagging exports and the removal of customs duty and sales tax on the import of cotton, manmade fibres other than polyester and sales tax levied on the import of textile machinery have also been withdrawn. The LCCI vice president concluded that such measures would enable the falling exports to go upward.
