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Incentives To Boost Pakistan's Textile Exports To US$ 2 Bln

• By  Textile Excellence
• June 10, 2014

Pakistan's commerce and textiles ministries have in place a number of incentives to push the country's textile exports to US$ 2 billion by 2015-16. Pakistan's textile minister said drawback for local taxes and levies will be given to exporters on FOB values of their enhanced exports if exports grow more than 10% (over the previous year's exports). The rate of support for garments will be 4%, followed by 2% for made-ups and 1% on processed fabrics exports. The rate of mark-up for export refinance scheme of the State Bank of Pakistan was reduced to 7.5% from 9.4%. SBP will provide Long-Term Financing Facility (LTFF) at 9% to the value-added sector to upgrade their units.

Duty exemption on textile machinery, which was to end on June 30 this year, has been extended for another two years. All admissible refunds claims of exporters would be disposed of within three months, if not earlier, Pakistan's textile ministry announced. The government has allocated Rs 4.4 billion to train 120,000 people, the textile minister said, adding that each trainee would be given a monthly stipend of Rs 8,000 during the three-month programme.

Commerce Minister Khurram Dastgir said the government will make legislations for the initiatives announced by the PPP-led coalition government in the second strategic trade policy framework (STPF 2013-15), including creation of Export-Import (EXIM) Bank of Pakistan and establishment of Pakistan Land Port Authority.

Textile Excellence