Page 18 - TEXtalks July-August 2021

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Government to continue DLTL for

the textile sector

Duty Drawback on Local Taxes and Levies (DLTL) is 6.5 dollars per MMBTU for exporters.
a special discount offered by Pakistan's government
to various industries. Under the DLTL scheme, the PHMA has also asked for the issuance of Textile
government has already released Rs 8 billion for Policy 2020-25 and said it should be issued
various industrial claims on 1st July 2021. The immediately while customs duty on import of yarn
government has allocated Rs 20 billion for the DLTL should be abolished. PHMA members earned more
scheme in the budget 2021/22 despite the demand than 3.5 billion annually in foreign exchange, while
of textile exporters, who are the main claimants, to the association had offices in Faisalabad, Karachi,
increase the allocation to at least Rs 75 billion to the Lahore, and Sialkot. The association has increased
clear backlog and new duty drawback of taxes exports by 33 percent in 11 months, while growth in
(DDT) / DLTL claims. May was more than 62 percent. PHMA was the most
prominent exporter of knitted garments. "t has more
Abdul Razak Dawood, advisor to the Prime Minister than 2,000 member companies across Pakistan and
on Trade, Textiles, and Investment, announced in a has the distinction of providing the most
meeting with the Pakistan Hosiery Manufacturers employment opportunities in the country.
and Exporters Association (PHMEA) that DLTL for
the textile sector would continue in the future to PHMA members said that after the closure of
increase the export of value-added textiles further. factories due to Covid last year, exporters could not
He said that the biggest problem of exporters was increase their exports by more than 10 percent, so the AD
zero sales tax rates, and he will talk to the prime incremental condition for DLTL should be removed,
minister and the finance minister for the betterment and DLTL should be given at a flat rate. They also
of the textile sector. The electricity tariff rate will be at requested to continue this policy in the future and
9.00 cents per kWh, while gas will be delivered at demanded that DLTL be given at a flat rate.

Pakistan German enterprises to

invest for bilateral trade

Pakistan invited German enterprises to invest in Pakistan in different fields, including health, education,
agriculture, power sectors, and textiles. Shaukat Tarin, Federal Minister for Finance and Revenue, assured
that all possible support and facilitation for improving the trade and economic relations between the two
countries. The government is firmly committed to putting the country on a trajectory of all-inclusive and
sustainable economic growth. For attaining this growth, the government has revived the long-term planning
process under the umbrella of the Economic Advisory Council (EAC).

EAC would formulate short, medium, and long-term plans to spur growth in key priority areas, focusing on
reducing poverty. The government also stands committed to reviving the business and industry that has been
hit hard amid Covid-19.

The ultimate focus of the government was employment generation, efficient resource mobilization, and
industrial growth. In 2019, Pakistan exported $1.78B to Germany. The main products that Pakistan exported to
Germany were House Linens ($329M), Non-Knit Men's Suits ($290M), and Non-Knit Women's Suits ($130M).
If the bilateral trade continues or improves, Pakistan could get enormous benefits regarding exports.

July/August 2021