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The textile sector, which accounts for 57% of total exports and 8.5% of Pakistan’s total size of economy, was among major contributors to the low exports. PHOTO: EXPRESS However in 2015-16, exports recorded a steep decline of 12.36% to $21.97 billion. Global exports also fell in that year, but they dropped only 1%. Shipments from Pakistan fell despite the Generalised Scheme of Preferences (GSP) Plus status that the country got from the European Union in December 2013. The status certainly gave an advantage as Pakistan’s exporters enjoyed better market access to the European bloc. The textile sector, which accounts for 57% of total exports and 8.5% of Pakistan’s total size of economy, was among major contributors to the low exports. In order to boost exports and improve foreign exchange reserves, then prime minister Nawaz Sharif announced trade enhancement incentives to the tune of Rs180 billion in January 2017. Initially, there was no condition on claiming duty drawback for the first six months from January to June 2018. But for the next fiscal year, the exporters are required to register an increase of 10% in exports in order to qualify for the incentives. The target has apparently been achieved as exports increased to $8.85 billion from July to February FY18 compared to $8.18 billion in the same period of previous year. However, some analysts believe that the growth might have been falsely recorded by the exporters, who have shown inflated receipts in order to receive government incentives.

For the original version including any supplementary images or video, visit https://tribune.com.pk/story/1721170/2-textile-industry-awaits-release-funds-pms-package/

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