Exporters demand incentive package

exporters-demand-incentive-package

Exporters demand incentive package KARACHI: The government should give out an incentive package to all categories of exports and not just textiles, exporters from various industries opined.

Trade bodies representing exporters took up the issue with the government after rumours began circulating that an incentive package for the textile industry is in the offing.

According to exporters’ representatives, the government is planning to give 8 per cent rebate on exports of textile garments and allow duty free imports of cotton by removing 4pc customs duty.

Calling the move discriminatory, exporters said if the government has set a criterion for giving incentive package, then it should be given to all sectors which are facing a fall in exports.

Fawad Ijaz Khan, patron-in-chief of Pakistan Leather Garments Manufacturers and Exporters Association, said leather garments ex­­ports during 2015-16 declined by 12.35pc from $366 million to Rs$320m. The declining trend is also continuing during this fiscal as exports were down by 8.5pc during July-August period.

He blamed declining exports on the high cost of production in Pakistan and overvaluation of the rupee against foreign currencies.

Mr Fawad said the incentive announced in the Trade Policy 2016-18 — giving 4pc rebate on 10pc incremental increase in exports of leather goods – is of no use as at present exports are down and exporters would not benefit from this scheme.

Talking to Dawn, Jawed Ali Ghouri, former chairman Federal B Area Association of Trade and Industry, said there has been a steep fall in rice exports last year and the same trend has been witnessed in first quarter of current fiscal.

The government should give an incentive package to all export goods which are recording a decline, he stressed. Such measures are no favour to exporters but rather will help arrest falling trend in exports of the country, he said.

Source: http://www.dawn.com/news/1289364/exporters-demand-incentive-package

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