PM Abbasi may soon unveil new exports package

KARACHI: Prime Minister Shahid Khaqan Abbasi is likely to unveil new exports package comprising reduction in industrial electricity and gas tariffs and other incentives during his possible visit to the city this week, industry officials said on Tuesday.

The new package will be in addition to one which was announced by the ex-prime minister Nawaz Sharif in January last year.

Sharif announced Rs180 billion worth of trade enhancement package to boost exports, which included revival of zero rate of sales tax and introduction of new duty drawback rates for garments, sports goods, leather and footwear sectors.

Industry officials said tariffs of electricity and gas would be revised downward only for exports sector and there will be no reduction for domestic consumers and other industries.

The business community has long been demanding the government to reduce energy prices for industry to make it competitive vis-à-vis Bangladesh and India. Presently, energy cost in Pakistan is twice as compared the regional competitors, according to Pakistan Business Council.

Prime Minister Abbasi, in a meeting with the office bearers of the Federation of Pakistan Chambers of Commerce and Industry in December last year, asked them to present a plan to strengthen the economy and for conducive and business-friendly environment.

An industrialist said the government has already taken several initiatives to boost exports. Rupee depreciation is also encouraging exports.

The Federal Board of Revenue released Rs58 billion of refunds in the first half of the current fiscal year of 2017/18, up 28 percent as compared to the corresponding period of the last year.

Further, the government is also intending to release all pending refunds and rebates of exporters by February 15.

The prime minister has already announced waiver of duty and taxes on import of cotton to reduce the cost of raw material for textile industry.

The ministry of commerce said exports has started growing with 15 percent/month and the exports would reach $23 billion during the current fiscal year.

Exports exhibited 11.24 percent growth to $11 billion in July – December 2017 over the same period last year. Exports fell 1.63 percent to $20.44 billion in the last fiscal year.