Pakistan’s textile exports in the first nine months of the current fiscal year grew 19 per cent in quantity and three per cent in value. Pakistan will provide incentives to the textile sector to boost value-added exports. The aim is to boost value-added textile exports to $30 billion over the next five years. The special energy package will continue for the five zero-rated sectors. The drawback of local taxes and levies scheme will continue for the five zero-rated sectors. This scheme was announced in the outgoing textile policy for exporters of textile products on free-on-board value of their enhanced exports on an incremental basis if exports increased more than ten per cent over the previous year’s exports.

Financing under the subsidised export finance scheme and long-term financing facility will be increased. A five per cent customs duty will be applied on raw cotton imports from July 2019. Support price will also be announced for raw cotton based on export parity.

The Federal Board of Revenue (FBR) will issue promissory notes for sales tax refunds for exporters. Sales tax refunds stand cleared till November 30, 2018. The FBR will also issue promissory notes of a three-year tenure with an interest rate of ten per cent.