ISLAMABAD: The government decision about zero rating policy has failed to enhance trade. Pakistan’s major export-oriented sectors are still showing negative growth despite they have received zero-rating facility from the government for the ongoing financial year.
As per the details, the five export-oriented sectors including textile, leather, carpets, surgical and sports sectors had demanded zero-rating facility from the government to enhance the country’s exports. They were of the view that exports are declining due to the non-availability of zero-rating. The government had accepted their proposal and announced zero-rating for the exports oriented sectors of the country. However, exports from these sectors remained negative during the year 2016-17.
The latest official data of Pakistan Bureau of Statistics (PBS) showed that textile exports went down by 1.74 percent to $8.2 billion during first eight months (July-February) of the present fiscal year from $8.4 billion of the corresponding period of previous year. In textile sector, exports of raw cotton decreased by 49.27 percent, and cotton yarn’s exports down by 6.14 percent. Similarly, exports of cotton cloth, yarn, knitwear and art silk and synthetic also recorded negative growth during the period under review.
The government had recently announced an incentive package worth of Rs180 billion to boost the textile exports. The government believes that exports would enhance in the months to come due to the incentive package.
According to the PBS data, the exports of other manufacturing group including carpets, sports good and leather goods also registered negative growth. Exports of carpets, rugs and mats came down by 17.86 percent, sports goods exports down by 5.49 percent and leather exports also showed negative decline during July-February period of the ongoing financial year. The exports of surgical goods had also reduced by 5.33 percent to $221.6 million during July-February period of 2016-17 as against $234 million of the corresponding period of the previous year.
The Senate Standing Committee of Commerce in last week recommended the government to announce a package for the other exports sectors as it announced for textile sector in order to boost the country’s overall exports.
Pakistan’s overall exports had come down by 3.9 percent to $13.32 billion during July-February period of the current fiscal year from $13.86 billion of the preceding year. However, imports have shown a massive increase of 15.99 percent and reached $33.52 billion during July-February of this fiscal year; from $28.9 billion during the same period in the previous year. The country’s trade imbalance has been recorded at $20.2 billion during July-February of the year 2016-17 as against $15.04 billion in the corresponding period of the last year.
