Advisor to Prime Minister on Commerce, Industry and Investment Abdul Razak Dawood, in a recent interview to Bloomberg, announced the government’s plan to provide tax breaks for industries with export potential, however, the textile sector has been excluded from this incentive.
Dawood explicitly excluded the textile sector from the new tax incentive saying “they have gone to the point that it is a drug.”. He further said, “If we want to go to 0 billion or 0 billion exports like Malaysia or Thailand, you ain’t gonna do it on textile.
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Pakistan’s exports, particularly textiles, became competitive after the rupee’s devaluation and duty cuts, Dawood said, citing a 36% jump in quantity of garments shipments. “It means that we are getting market share, we are taking somebody’s market share.”
Dawood said, “I am in favor of limited time-bound incentives,” indicating a three- to four-year period for tax breaks. Engineering, chemicals, technology and footwear are among the 20 sectors identified for incentives, he said.
Dawood said he saw outbound shipments growing to .
5-$25 billion this fiscal year ending June from $23 billion last year.
