In the first nine months of the current fiscal year Pakistan’s textile exports grew 19 per cent in quantity and three per cent in value.

Incentives will be provided to the textile sector to boost value-added exports. The aim is to boost value-added textile exports to 30 billion dollars over the next five years. The aim is to increase exports, boost the domestic economy, accelerate industrialisation and create job opportunities. The six major sub-sectors of the textile sector, including spinning, weaving, processing, printing, garment manufacturing, and yarn manufacturing, are expected to benefit by adopting value addition and modern techniques. 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. Exporters of textile products will be entitled to free-on-board value of their enhanced exports on an incremental basis if exports increase more than ten per cent over the previous year’s exports.

Financing under the subsidized 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.