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    Pakistan Invested $1 Billion 700 Million To Encourage Exports Of Garments And Textiles

    2017/2/7 15:19:00 63

    Ready-Made GarmentsRaw MaterialsKnitted Garments

     Pakistan garments

    According to the world clothing and shoe net, the clothing industry in Pakistan said that the Pakistani government announced a new aid plan in mid January (2017) to promote Pakistan. Ready-made clothes Exports are welcomed by the industry and hope that the plan can be implemented quickly. IjazKhokhar, chairman of the Pakistan garment factories and Exporters Association (PRGMEA), welcomed the government's offer of a new incentive of 180 billion rupees (US $1 billion 700 million) to promote the export of garments and textiles in the country.

    These industries are still the main export industries for foreign exchange in the country, and the plan pays special attention to ready-made clothes, and the government cuts key cotton and cloth. Raw material Import duties.

    The objective of the plan is to increase the total export volume of the country's total industry by US $3 billion by June (2018). According to world bank data, the total export volume of the country in 2015 amounted to US $22 billion. International trade figures show that exports of goods and clothing (excluding knitted goods) account for 2 billion 100 million US dollars. Knitted garment And accessories accounted for us $2 billion 300 million; knitted fabrics accounted for us $41 million.

    However, Khokhar warned that the prime minister NawazSharif announced its incentives in the near future, and if it can be implemented immediately and effectively, there will be instant results. The government of Pakistan has announced major clothing industry initiatives in the past, but sometimes there are imbalances in its implementation.

    "The prime minister's stimulus plan of 180 billion rupees is good news for exporters," Khokhar said. If implemented immediately, it will enable exporters to significantly increase their exports.

    The announcement was issued after Khokhar's request to the prime minister in November last year. The government announced a series of long-awaited measures to facilitate the textile industry to follow the dialogue between the Federal Minister and the clothing and textile industry in the country (and its suppliers), and the industry has been making efforts to ensure overseas sales and force the government to provide the necessary support.

    Pakistan apparel industry seeks export assistance

    The main features of the plan include the abolition of sales tax and tariffs on textile machinery and cotton imports.

    It also includes reducing import tax for export purposes (known as export tax rebate) import tax - the duty rate of garments sold overseas is 7%, textile finished products are 6%, processing cloth is 5%, embryo cloth is 4%, sports goods, leather and footwear are 7%.

    According to a government statement, these tax rebates will reduce the Pakistan government's revenue by 90 billion rupees ($858 million) in 18 months, and the total cost of the plan is about 100 billion rupees (equivalent to US $945 million).

    The prime minister issued his statement in the office of Islamabad, expressing his praise in front of business leaders, and said he hoped the package would increase exports and provide a "hundredfold return" income.

    Looking ahead, IjazKhokhar also urged the government to abolish import tariffs on imported raw materials, including technical and functional fibers that are in short supply in Pakistan. He also wants to cancel the import duty of yarn.

    Khokhar said: "the garment industry needs more incentive measures, and the government should also abolish the import tax on yarn imports, which, together with the existing elements in the plan, can help exporters of garment exporters in Pakistan boost exports."

    According to the data obtained from the Pakistan Statistical Bureau, although Pakistan gained the tax exemption trade status of the Generalized System of Preferences (GSP+) granted by the EU market in January 2014, the total export volume of the country decreased by more than 12% between 2013 and 2015.

    According to statistics from the Pakistan Bureau of Statistics (PBS), the total export volume of the country from July to December was $9 billion 912 million, which was 3.82% lower than that of the previous (2015) period of 10 billion 306 million US dollars in the same period of 2016.

    More interesting reports, please pay attention to the world clothing shoes and hats net.

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