Pakistan’s textile exports rose 10 per cent in December 2017 compared to December 2016. Textile exports during the first six months of the current fiscal year were up 8.07 per cent compared to July-December 2016. Among the reasons for the increase are flow of cash under the PM's incentive package, payment of sales tax refunds as well as the depreciation of the local currency, which improved exporters’ liquidity situation.

Also, 50 per cent of the rate of drawback of local taxes and levies was to be provided, without condition of increment, and the remaining 50 per cent to be provided if the exporter achieves an increase of ten per cent or more in exports during fiscal year 2017-18 as compared to fiscal year 2016-17. An additional two per cent was allowed for exports to nontraditional markets - Africa, Latin America, non- EU countries, Commonwealth of Independent States and Oceania.

Major measures have been introduced to facilitate duty drawback of local taxes. The energy cost in Pakistan is more than 30 per cent of the total conversion cost in the spinning, weaving and processing industries. Industrial gas tariff in Pakistan is about 100 per cent whereas the electricity tariff is about 50 per cent higher than their regional competitors’.