AMER SIAL
The government is unlikely to achieve its ambitious target to enhance exports to $35 billion per annum by 2018, even though an exercise is underway to provide some big incentives to kick start the export-oriented sector, an official source said.
The government had announced a three-year strategic trade policy in April this year that has set an annual export target of $35 billion. However, the measures required for boosting exports were withheld till first July, the date when the new fiscal year starts.
An official source revealed that the Ministry of Commerce has yet to receive funds from the Finance Ministry to implement various schemes announced under the Trade Policy. He said more than Rs 30 billion under the Export Development Surcharge (EDS) were withheld even though it was collected from export proceeds.
To revive the export sector, the government, the source said, was working on a proposal to provide 3 per cent rebate on yarn and grey fabric, 4 per cent on processed fabrics, 6 per cent on home textiles and knitwear and 8 per cent on garments. The proposed rebate for raw and semi-raw exports would be 4 per cent and value added sectors 8 per cent, respectively.
However, the source said merely providing incentives to textile sector would not yield results as for enhancing exports the government should attract foreign investment in agriculture, farm products processing, dairy, IT and engineering sectors.
Pakistan’s exports have declined from $25 billion in 2013-14 to $20.8 billion in 2015-16. The main reason attributed by Commerce Ministry is decline in commodities prices. However, in the same period the Bangladesh’s exports have increased from $31 billion to $34 billion. Even the World Bank under rates Pakistan’s performance and says that country’s having similar indicators like Pakistan have exports over $ 40 billion per annum.