Home HEADLINES Govt released Rs32 billion under PM export package to enhance exports

Govt released Rs32 billion under PM export package to enhance exports

Govt released Rs32 billion under PM export package to enhance exports

ISLAMABAD: Around Rs32 billion have been released by the government for enhancing clothing and textile exports in the last 1.5 years.

The disbursement of funds was done under the prime minister’s incentive package for the textile sector and it helped enhance the speed of growth of the value-added products segment, reported Dawn.

According to official data, the government released Rs26 billion cash subsidies under the PMs special textile package for Jan-June 2017.

And no conditions had been in place in the cash subsidies released during the aforementioned period.

The total claims for clash payment were recorded at Rs34 billion during Jan-June 2017, leaving a balance of Rs8 billion outstanding to be paid to exporters.

In the just concluded FY18, the government got claims totalling Rs11 billion till June 2018. An official source said these claims will rise as export proceeds increase.

The source told that cash subsidy amount claims could rise as high to Rs60 billion for FY18. Till now, the government has disbursed Rs2.5 billion cash subsidy on exports for FY18, leaving a balance of Rs9 billion.

The country’s textile and clothing exports touched $13.53 billion in FY18 compared to $12.45 billion in FY17, showing a growth of 8.67 percent.

This indicates cash subsidies partially grew due to increased export proceeds from the sectors.

And the growth trends in exports of value-added sectors in knitwear, bedwear and garment were much higher during the just concluded FY18.

Under the PM’s textile package, cash support provided in the shape of duty drawback rates for textile governments were recorded at 7 percent; processed fabric 5 percent, yarn and grey fabric 4 percent and textile made-ups 6 percent.

Nevertheless, half of the rates unrestricted, whilst the rest were conditioned to exhibit a rise in export proceeds.

Also, an additional 2 percent will be provided on exports to non-traditional markets which has 147 countries on the list.

Till now, no payment has been collected under this category.