ISLAMABAD, Pakistan: Prime Minister Nawaz Sharif on Tuesday announced an attractive package of incentives of Rs 180 billion aimed at achieving the objective of export-led growth.
While addressing a function of leading exporters in Islamabad, the prime minister said that package envisaged abolition of customs duty and sales tax on import of cotton. Similarly, he added, customs duty on man-made fiber other than polyester and sales tax on import of textile machinery had also been abolished.
Under the package, duty draw back rates for textile garments would be seven percent; textile made ups six percent; processed fabric five percent; Yarn and grey fabric four percent; sports goods, leather and footwear seven percent.
The prime minister said that his government had already announced a package for agriculture and today a package for industry was given. He hoped that development of these sectors would help overcome problems like unemployment, ignorance and backwardness and put Pakistan on fast track progress.
The prime minister said that when the present government assumed power, there were many challenges including terrorism, lawlessness, energy shortage, poverty and unemployment; however, the government took bold measures to brace these challenges and today an all-round improvement wa visible.
Nawaz Sharif said that dozens of power plants were being installed under China Pakistan Economic Corridor (CPEC) besides many others being financed by the government of Pakistan.
Sharif said that their objective was to ensure availability of cheaper electricity on sustainable bass. He said that 10,000 megawatts would be added to the system by next year and 30,000 within the next few years.
The prime minister further said that the government decided to fund Bhasha Dam from its own resources which would generate 4500 MW of electricity. He said that its power house would be built under CPEC.
Furthermore, he said that Pakistan Railways was also being revamped and upgraded with an investment of $8 billion. He said that the improvement plan envisaged doubling the speedy and halving the distance between Karachi and Peshawar.
The prime minister said that a network of roads, highways and motorways was being laid at a cost of Rs 1,000 billion integrating different regions of the country.
The premier said that interest rate was lowest in the history of the country and the government is facilitating investors.
Earlier, the prime minister met leading exporters of the Country and sought their support in making country’s exports competitive internationally.
The exporters briefed the prime minister about the various issues they confront in increasing exports.
The prime minister solicited their input to incentivize their sectors and enhance the quantum significantly.
Separately, the Federal Finance Minister Ishaq Dar also addressed the ceremony, and said that the prime minister accepted all demands of the business community.
Ishaq said that the government was providing liberal incentives to the business community and it was now responsibility of the exporters to increase the exports significantly. He asked them to ensure that exports were increased to 10 percent of the gross domestic product (GDP).
The Minister for Commerce Khurram Dastgir said that Pakistani exports lost competitiveness due to incentives by our competitors, complication in taxation and energy shortages.
Khurram Dastgir expressed the confidence that with this package and improvement in law and order situation and energy situation, the exporters would show results.
The minister said that Free Trade Agreements (FTA) were being negotiated with Thailand and Turkey.
The President Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Zubair Tufail expressed the hope that 2017 and 2018 would prove to be years of exports. He said that the country achieved economic stability as a result of measures taken by the present government during the last three years.
The Chairman All Pakistan Textile Mills Association (APTMA) Aamer Fayyaz Sheikh thanked the government for announcing a generous package of incentives and said that the business community would not disappoint the nation.
