President Pakistan Businessmen and Intellectuals Forum (PBIF) Zahid Hussain has said that the impact of Rs 180 billion package will be temporary therefore the government should frame a long-term policy following the examples of India, Bangladesh, Vietnam and China etc.
"Welcoming the Rs 180 billion package, announced by the prime minister, and terming it as a timely move to boost exports, the textile and other exports industries were asking for an incentive package as they were losing competitive edge in the international market because of high cost of production," he said.
Mian Zahid Hussain said that package should be implemented without any delay to boost exports and improve competitiveness of export sector as it would push exports by 2.5 to 3.00 billion dollars.
He said the government had earlier announced many packages including reduced cost of energy, reduced taxes etc which had a positive impact. He said the package which would be effective for one and a half year would support industries like textile, clothing, carpet, surgical instruments, and sports goods while the major beneficiary would be the textile sector responsible for 58 percent of the export earnings.
He said that abolition of import duty and sales tax on import of cotton would help spinning sector and government should also reduce taxes on import of yarn to boost clothing sector.
Mian Zahid Hussain said that 87 percent of the cash subsidy would go to the units in the textile sector for good results which would improve their competitiveness against rival nations.
The package would strengthen export sector and boost exports while creating employment opportunities.
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