During the first six months of the current financial year, Pakistan’s exports of readymade garments grew 5.87 per cent compared to the corresponding period of last year. Knitwear exports increased 0.17 per cent; bed wear exports recorded a 4.66 per cent growth. But exports of raw cotton, cotton yarn and cotton cloth witnessed negative growth during the last two quarters of the current financial year. Recently, Pakistan 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 ten per cent in financial year 2017-18. 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.