Govt to offer tax breaks for industries with export potential, says PM advisor

• PM advisor Abdul Razak Dawood said that an export policy will be announced next year in January.
• Dawood was of the view that Pakistan needs to broaden its export base, and look beyond textiles.

With the aim to relieve exporters, the government plans to introduce tax breaks to various industries, which exhibits export potential in the upcoming export policy.

This was stated by Advisor to Prime Minister Abdul Razak Dawood, while talking to Bloomberg. The advisor said that some 20 industrial sectors are identified including engineering, chemicals, technology and footwear with export potential.

The advisor added that an export policy will be announced next year in January.

“I am in favor of limited time-bound incentives,” Dawood said. The industrialist opposed concessions for the textile industry, which makes the lion share of Pakistan exports, saying, “They have gone to the point that it is a drug”.

Dawood was of the view that Pakistan needs to broaden its export base, and look beyond textiles. “If we want to go to $100 billion or $200 billion exports like Malaysia or Thailand, you ain’t gonna do it on textile,” said Dawood.

The advisor said that the central bank’s move to devalue rupee proved as a boon for textiles, as a 36 percent jump in quantity of garments shipments. “It means that we are getting market share, we are taking somebody’s market share.”

Just days ago, Adviser to the Prime Minister of Pakistan on Finance and Revenue Abdul Hafeez Sheikh said informed that Pakistan posted 4.8pc export growth in five months (July-Nov 2019).

In a tweet, the advisor said that in five months (July-Nov 2019) exports increased by 4.8 percent as compared to same period last year. “Value added exports like readymade garments, knitwear & other major exports are showing strong pick up in both quantity & value,” he said.