Notifications issued to affect PM's export incentive package

Notifications issued to affect PM’s export incentive package

KARACHI: Revenue Division Government of Pakistan has exempted whole of customs duty on several goods imported and used primarily by export oriented textile sector. According to a notification issued on Monday, cotton, acrylic or modacrylic, polypropylene, viscos rayon, nylon or other polyamides, artificial staple fibers processed for spinning. However, additional duty at the rate of 1.0 percent is also imposed on import of the above mentioned goods vide SRO No 38 (1)/2017. Moreover, the Revenue Division has also accorded benefit of concessionary SRO No.1125 (1)/2011 to machinery, not manufactured locally, if imported by textile industrial units registered with Ministry of Textile Industry.

Prime Minister announced recently a export package aimed at arresting the trend of falling exports in the remaining months of the current fiscal year.

The package is worked out in a way to minimise the impact of the 8 per cent rebate that the Indian government gives to its exporters to compensate for falling prices of commodities in the international market.

In the first half of 2016-17, export proceeds fell to $9.91bn from $10.31bn a year ago, Pakistan Bureau of Statistics (PBS) data shows. Pakistan’s exports fell to $19.5bn in 2015-16 from $25bn in 2013-14.

The proposed Prime Minister’s Trade Enhancement Initiative covers raw materials used in five value-added sectors, namely textiles, leather, sports, carpets and surgical goods.

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