Incentives announced to boost country’s exports
Islamabad, February 16: To increase exports, the government has announced several incentives through the Commerce Division in Strategic Trade Policy Framework (STPF) 2012-15 that will help improve the balance of payment situation of the country.
An official in Commerce Division told Daily Times on Saturday that the mark-up support of 2% on prevailing Long Tern Financing Facility (LTFF) for future import/purchase of machinery has been announced to encourage fresh investments in export oriented industries in a tough economic environment, for the manufacturers cum exporters of the selected sectors (i.e. leather, engineering, horticulture, processed food, marble and granite, sports goods and computer related services) to increase their products.
To boost exports of the country by promoting the value added sector, a further mark-up reduction of 1.5% from the prevailing rates (8.4%) of Export Finance Scheme (EFS) will be provided to the fish and fish preparation, processed foods, meat and meat preparations, sports goods, footwear, leather products, surgical goods, cutlery, onyx products, pharmaceuticals, electric fans, transport equipment and electrical machinery sectors.
To offset the increasing cost of utilities, selected non-textile exporting sectors (fish and fish preparations, processed foods, meat and meat preparation, sports goods, footwear, surgical goods/medical instruments, cutlery, electric fans, auto parts and furniture) will be provided ad-hoc relief 3% of FOB.
To support the initiative and to motivate exporters, subsidy on the opening retail sale outlets will be provided up to 75%, 50%, 25% per annum of the rental cost in the export markets in Asia, Africa and Australia.
To increase income of the farmers and foreign exchange earnings, the government will provide 50% subsidy in the cost of plants and machinery for dates and olive processing.
To incentivise establishment of fruits processing plants in Gilgit-Baltistan (GB), the government will provide 50% subsidy in the cost of plant and machinery for establishing processing plants for fruits and vegetable in GB. To increase processed meat exports from the bordering regions, a mark-up subsidy at the rate of 50% of the prevailing mark-up rate, for setting up meat processing plans in KP, Balochistan and Gilgit-Baltistan will be provided.
To control un-scientific and explosive based orthodox mining and processing methods, mark up subsidy @ 100% of the prevailing mark-up rate and 50% subsidy for wire saw, cutting machinery to reduce wastages for establishing mining and processing in KPK, GB and Balochistan, will be provided.
The official further said that for sustain communication between the government and private sector for promotion of leather exports, Commerce Division will establish Leather Export Promotion Council. To boost services exports from Pakistan, Services Export Development Council will also be established.