Pakistan has unveiled a package to boost the country’s exports. Duty drawback for garments would be seven per cent, for textile made-ups six per cent, for processed fabrics five per cent, for yarn and grey fabric four per cent, for sports goods, leather and footwear seven per cent and for carpets and tents five per cent.
Import duties on cotton, customs duty on manmade fiber other than polyester and sales tax on imports of textile machinery have been abolished. Liberal incentives are likely. Exporters will be liable to increase exports by five per cent from January to June 2017 and then by a further 10 per cent in financial year 2017-18.
Dozens of power plants are being installed under the China Pakistan Economic Corridor. The objective is to ensure availability of cheaper electricity on a sustainable basis. The plan is that 10,000 megawatts of electricity would be added to the system by next year and 30,000 megawatts within the next few years.
A network of roads, highways and motorways will be laid, integrating different regions of the country. Interest rates have been lowered and investors are being facilitated. The zero-rated facility has been given to five export sectors in the budget.