Garment manufacturers and exporters of Pakistan want an extension of the incentive package for another two years.This is in view of the ballooning trade deficit.

The incentive package, announced in 2017, is aimed at achieving the objective of export-led growth. The removal of customs duty and sales tax on the import of cotton is the major attraction of the package. Customs duty on man-made fibers, excluding polyester, and sales tax levied on the import of textile machinery have also been scrapped.

The issue of delay in release of tax refunds has also been raised by the industry. As a result of the delay in refunds, more than 30 per cent of the cash flow is blocked now.

The textile industry in Pakistan contributes 57 per cent to the country’s exports.

The country is working on upgrading its supply chain, improving productivity, and maximising value addition.

The growth in textile and clothing exports of Pakistan has enhanced the country’s overall exports. These results have been achieved due to export-friendly policies and renewed efforts toward seeking better market access. The positive trend in the international demand and exchange rate correction are also expected to help sustain this rising trend in the coming months.