PM likely to announce special package for exporters

ISLAMABAD: In order to make Pakistan’s exports competitive on pattern of India by providing rebate scheme to the tune of Rs70 to 75 billion, Prime Minister Nawaz Sharif is going to unveil special incentive package today (Tuesday) for boosting exports of Pakistan’s made ups.

India was providing incentives to its exporters making it hard for Pakistani side to compete with them in international market. In such circumstances, the government has decided to incentivise them by providing rebates on exports which will help them become competitive in international market.

However, chairman of All Pakistan Textile Mills Association (APTMA) has demanded the government to introduce uniform rate of electricity by waiving off surcharges to the tune of Rs3.50 on power bills. “We expect that the prices of electricity will be reduced for exporters,” APTMA leader SM Tanveer told The News on telephone.

But sources said exporters’ demand of waiving off special surcharge on power bills was rejected by the government. However, Nawaz Sharif in his address to exporters today (Tuesday) will announce rebate scheme for them in order to fetch multi billion dollars exports in months ahead.

Pakistan’s increasing trade deficit is cause of worry for the economic managers as new incentive package was finalised last week after thorough discussions among dwellers of Q Block with the Ministry of Commerce high-ups along with business tycoons.

“All major exporters of the country have been invited at the PM Secretariat on Tuesday in which a special package is expected to be announced by the premier,” official sources confirmed while talking to The News.

Chairman FPCCI Zubair Tufail, when contacted, said different proposals were under consideration and the PM might announce some package today at a function arranged at the PM Secretariat. Pakistan’s trade deficit had reached close to $11.8 billion during first five months (July-Nov) period of the current financial year which was $2 billion more than the same period of the last financial year. The country’s exports plunged 3.93 percent to $8.2 billion during July-November, which was $335 million less than the comparative period of last year. Compared to this, the import bill increased 8.8 percent to almost $20 billion in the same period. In absolute terms, the import bill was $1.6 billion more than in the previous year. Earlier, the government had issued special instruction for payment of stuck up refunds in order to remove liquidity crunch being faced by exporters.