The textile industry in Pakistan has got a revival package. Results are expected in six months and to give a boost to the country’s dwindling exports. Import of cotton and man-made fiber will be exempt from duty and sales tax. Duty drawbacks on exports include four per cent on yarns/grey fabric, five per cent on processed fabrics, six per cent on home textiles/made-ups and seven per cent on garments, seven per cent for sports goods, leather and footwear and five per cent for carpets and tents.
A network of roads, highways and motorways will be laid, integrating different regions of the country. Interest rates have been lowered and investors are being facilitated. The zero-rated facility has been given to five export sectors in the budget.
Exporters are given incentives and will be liable to increase exports by five per cent from January to June 2017 and then by a further 10 per cent in financial year 2017-18. Dozens of power plants are being installed under the China Pakistan Economic Corridor. The objective is to ensure availability of cheaper electricity on a sustainable basis. The plan is that 10,000 megawatts of electricity would be added to the system by next year and 30,000 megawatts within the next few years.