To enhance Pakistan's export competitiveness and institutional strengthening under the Strategic Trade Policy Framework (STPF) 2015-18, the federal government would spend Rs 20 billion in the next three years. In response to emerging international changes, several other initiatives are being implemented to enhance the export basket and market share. The total volume of Pakistan's exports that was $24.5 billion in 2013 fell to $20.8 billion in 2016.
Among the steps taken by the government to enhance exports are: sales tax zero-rating regime for five export oriented sectors comprising textile, leather, carpets, surgical and sports goods has been introduced from July this year. The other steps were establishment of Export Promotion Council for Pharmaceuticals & Cosmetics, and Rice Export Promotion Council, support for import of plant & machinery to strengthen supply chain and encourage value addition and performance based incentive (PBI) to offset burden of higher utility costs and local levies and taxes on export sectors.
Under short-term export enhancement measures, four product categories comprising basmati rice, horticulture, meat and meat products and jewellery were aimed at with parallel focus on markets including Iran, Afghanistan, China and European Union. An additional Rs 6 billion was available this fiscal year to exporters through Textile Policy. 2014.
