The package, effective from January 2017 to June 2018, will reduce the cost of conducting business and boost trade, a Pakistani news agency reported quoting a senior textiles ministry official.
The government has also relaxed the import of textile machinery to enhance the sector’s capacity and has introduced 16 new varieties of cotton for better production, the official said.
In June 2017, the All Pakistan Textile Mills Association (APTMA) had demanded full implementation of the export-led growth package worth Rs 180 billion to bail out the domestic textile industry and to enhance the country's declining exports.
In a recent press release, APTMA urged the prime minister to ensure that the tax authorities pay outstanding sales tax refunds amounting to over PKR 200 billion to textile mills before August 14, as the sector is facing severe liquidity crunch.
The textile association feels as gas and electricity tariffs in Pakistan are around 30 per cent higher compared to regional rivals, the country’s exports turn uncompetitive in the global market. (DS)
ALCHEMPro News Desk – India
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