Islamabad: Pakistan Prime Minister Nawaz Sharif on Tuesday announced a Rs 180 billion incentive package to boost the country's sagging exports, especially of cotton.
The package envisages abolition of customs duty and sales tax on import of cotton. Customs duty on man-made fibre other than polyester and sales tax on import of textile machinery has also been scrapped.
Under the package, duty draws back rates for textile garments would be 7 per cent; textile made ups 6 per cent; processed fabric 5 per cent; Yarn and grey fabric 4 per cent; sports goods, leather and footwear 7 per cent, the Radio Pakistan reported.
Sharif made the announcement at a ceremony attended by members of the business community in Islamabad.
The Prime Minister expressed confidence that the package will help achieve the government's objective of export-led growth.
During his address, Sharif noted that dozens of power plants are being installed under China-Pakistan Economic Corridor (CPEC) project besides many others being financed by the government.
He reiterated the government's objective to ensure availability of cheap electricity on a sustainable basis, adding that 10,000MW of new power generation will be added to the system by next year, and 30,000MW within the next few years.
Sharif also said the government has decided to fund construction of the 4,500 MW Bhasha Dam using Pakistan's own financial resources. However, the powerhouse on the dam will be built under CPEC.
He also announced that Pakistan Railways is being revamped and upgraded with an investment of USD 8 billion, and that it is looking to halve the time it normally takes to travel from Karachi to Peshawar.
The Prime Minister said a network of roads, highways and motorways is being laid at a cost of one thousand billion rupees integrating different regions of the country.
In his speech, Finance Minister Ishaq Dar said the government is providing liberal incentives to the business community and it is now responsibility of the exporters to increase the exports significantly.
He asked them to ensure that exports are increased to 10 per cent of the GDP.
Minister for Commerce Khurram Dastgir said Pakistani exports lost competitiveness due to incentives by competitors, complication in taxation and energy shortages.
He expressed confidence that with this package and improvement in law and order situation and energy situation, the exporters would show results.
The Minister said Free Trade Agreements (FTA) are being negotiated with Thailand and Turkey.
