Pakistan’s government has approved a Package of Incentives for Exporters to encourage traders to sell their goods abroad. The incentives are being offered with a view to mitigate exporters’ difficulties and enhance the country’s exports.
The package will have an estimated financial impact of Rs. 180 billion, and is applicable for the period from January 16, 2017, till June 30, 2018. The incentives for FY 2017-18 would only be available to those exporters who would achieve an increase of 10% in their exports as compared to their exports for FY 2016-17.
Pakistan’s exports in December fell by 3 percent, while imports rose 17.6 percent in December, according to the official figures. The balance of trade is current at nearly 30 billion rupees.
Pakistan’s exports are heavily depended on textile which accounts for more than half of the country’s total exports. Pakistan currently enjoys special GSP+ status and its textile imports have posted decent growth in recent years.
But, power outages and gas shortages have weighed heavily on overall efforts to boost exports. Many factories have closed in recent years. Due to load-shedding, factories are unable to work on their full capacity.