ISLAMABAD: National exports have started the recovery process by registering double digit growth during the first half of the financial year 2018. Exports had been decreasing for the last three years, during the last seven months export have increased by 11.11% compared with the corresponding period of last year.
This is all due to the fact that Ministry of Commerce (MoC) has taken a number of measures to facilitate the exporters to enhance their exports like Prime Minister export package of Rs180 billion which is applicable for nearly 18 months for the period from January, 2017 to end of June this year.
“Out of the total annual allocation of Rs120 billion, an amount of Rs107.5 billion has been allocated to textiles sector (Rs 87.5 billion for Draw Backs and Rs 20 billion for withdrawal of duties / taxes on import of cotton and machinery), whereas an amount of Rs 12.5 billion is the annual allocation for draw backs on export of non-textiles (other value added sectors)” a well placed official source at MoC told Customs Today.
The source told that under Strategic Trade Policy Framework (STPF) 2015-18, a total of Rs. 6 billion was allocated for current year to be spent on the development of the export sector. 2% additional incentives is being provided for exports to nontraditional markets i.e. Africa, Latin America, non-EU European countries, Common-wealth of Independent States and Oceania
“The initiatives, inter-alia, include a. Technology Up-gradation: An incentive for technology up gradation in the shape of investment support of 20% and markup support of 50% up to a maximum of Rs1 (one) million per annum per company for import of new plant and machinery” the source observed.
Moreover, the source said that draw-back of local taxes and levies was also given to exporters on free on board (FOB) values of their enhanced exports if increased by 10% and beyond (over last year’s exports) at the rate of 4% on the increased exports.
Furthermore, the source said that MoC signed an agreement with Indonesia to reduce tariff to zero on 20 tariff lines of Pakistan’s prime export goods which were mangoes, broken rice, tobacco, yarn, fabric, denim, garments, towels and bed linen. These 20 tariff lines account for around 25% of Pakistan’s global exports. Indonesia’s global imports in these tariff lines are around $ 600 million.
