ISLAMABAD: Prime Minister Nawaz Sharif has announced an attractive package of incentives of 180 billion rupees to boost exports.
He made the announcement at a ceremony attended by members of the business community in Islamabad this afternoon.
The package envisages abolition of customs duty and sales tax on import of cotton. Similarly, customs duty on man-made fiber other than polyester and sales tax on import of textile machinery has also been abolished.
Under the package, duty draw back rates for textile garments would be 7%; textile made ups 6%; processed fabric 5%; Yarn and grey fabric 4%; sports goods, leather and footwear 7%.
The Prime Minister expressed the confidence that the package would help achieve the objective of export-led growth.
Mian Nawaz Sharif said there were many challenges including terrorism, lawlessness, energy shortage, poverty and unemployment when the present government assumed power. He said his Government took bold measures to brace these challenges and today an all round improvement is visible.
The Prime Minister said dozens of power plants are being installed under CPEC besides many others being financed by the Government of Pakistan.
He said their objective is to ensure availability of cheaper electricity on sustainable bass. He said ten thousand megawatts would be added to the system by next year and thirty thousand within the next few years.
Mian Nawaz Sharif said the Government has decided to fund Bhasha Dam from its own resources which would generate 4500 MW of electricity. He said its power house would be built under CPEC.
He said Pakistan Railways is also being revamped and upgraded with an investment of eight billion dollar. He said the improvement plan envisages doubling the speedy and halving the distance between Karachi and Peshawar.
The Prime Minister said a network of roads, highways and motorways is being laid at a cost of one thousand billion rupees integrating different regions of the country.
He said interest rate is lowest in the history of the country and the Government is facilitating investors.
The Prime Minister said his Government had announced a package for agriculture and today a package for industry has been given. He hoped that development of these sectors would help overcome problems like unemployment, ignorance and backwardness and put Pakistan on fast track progress.
In his speech, Finance Minister Ishaq Dar said the Prime Minister has accepted all demands of the business community.
He said the government is providing liberal incentives to the business community and it is now responsibility of the exporters to increase the exports significantly.
He asked them to ensure that exports are increased to 10% of the GDP.
Minister for Commerce Khurram Dastgir said Pakistani exports lost competitiveness due to incentives by our competitors, complication in taxation and energy shortages.
He 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 Free Trade Agreements (FTA) are being negotiated with Thailand and Turkey.
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 the country has achieved economic stability as a result of measures taken by the present Government during the last three years.
Chairman APTMA Aamer Fayyaz Sheikh thanked the Government for announcing a generous package of incentives and said business community would not disappoint the nation.