PM Nawaz Sharif to announce the export package worth Rs70 billion 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.
________________________________________The government will give a rebate of 3pc to 6pc on export proceeds of the value chain. The lowest rate will be on the export of primary or low value-added products while the highest rate will apply to value-added products.
In the textile and clothing sectors, the rebate will be 3pc and 4pc on the export of yarn and fabric, respectively.
In the value-added sector, the government will give a 6pc rebate on the exports of readymade garments and 5pc on home textiles. “This package has no condition such as a percentage increase in exports over the last year,