ISLAMABAD: Finance Division has released total Rs 5.2 billion to Trade Development Authority of Pakistan (TDAP) for export promotion during the last five years (from July 2012-June 2017). TDAP is the primary exports promotion department of Pakistan; however, TDAP could utilize only half of the said amount Rs 2.41 billion in this period.
The sales tax zero-rating regime for five export oriented sectors, i.e., textile, leather, carpets, surgical and sports goods have been introduced with effect from July 1, 2016.
In order to counter the import surge through unfair trade and strengthen trade defence mechanisms, National Tariff Commission Act has been revamped and approved by the Parliament in 2015. In order to promote exports to new markets, Trade Development Authority of Pakistan is undertaking various export promotional activities through trade exhibitions and delegations.
When this correspondent talked to a well placed official source at Ministry of Commerce (MoC) for lack of capacity of TDAP in utilization of more than half funds released by the Finance Division for exports’ promotion, the source said that on the initiative of MoC, prime minister announced the export package of Rs180 billion for exporting business community, which was applicable for nearly 18 months for the period from 16th January, 2017 to 30th June, 2018. The incentive for 2017-18 would be available to those who would achieve an increase of 10% in annual exports.
“Out of the total annual allocation, an amount of Rs107.5 billion has been allocated to textiles sector (Rs87.5 billion for Draw Backs and Rs20 billion for withdrawal of duties/taxes on import of cotton and machinery), whereas an amount of Rs12.5 billion is the annual allocation for draw backs on export of non-textiles (other value added sectors)” the source confirmed.
Moreover, the source said that under Strategic Trade Policy Framework (STPF), 2015-18, a total of Rs. 6 billion was allocated for current year spent on the development. An incentive for technology up-gradation in the shape of investment support of 20% and mark-up support of 50% up to a maximum of Rs 1 (one) million per annum per company for import of new plant and machinery.
“Basmati rice, horticulture, meat and meat products, and jewellery, are being focused with the parallel focus on Iranian, Afghan, Chinese and European Union markets. Under Textile Policy 2014-2019, Rs. 6 billion was allocated in the fiscal year FY2016-17 to facilitate exporters” the source maintained.
