Pakistan’s budget for 2018-19 focuses on general industry and trade. The zero-rating regime has been continued. But exporters say their refunds should be disbursed and that export development surcharge should be abolished. They also want the one per cent tax on export to be reduced to 0.5 per cent. They argue, their problems will multiply owing to the liquidity crunch and as a result the trade deficit will further widen. The liquidity crunch is a major stumbling block in the way of improving exports.

Exporters want a reduction in electricity and gas tariffs. Energy is an important element regarding the cost of production particularly for the spinning, weaving and processing industries. Exporters say its availability at a regionally competitive price is important. Another of their proposals is that gas prices should be uniform throughout the country.

In value added textiles, particularly garments and knitwear, Pakistan lacks variety both in products and type of fabrics. The country does not produce blended yarn and blended fabrics that the global market demands. Pakistan’s textile exports rose 7.2 per cent during the first eight months of the current fiscal year. Textile exports make up around 60 per cent of the country’s total exports.