test


Member ID:
Password: 
Stay logged in for 30 days
Forget Your Password?
close

login CCFGroup App

Industry News | Time:Jan 11 2017 8:28AM
Pakistan: proposed package for exports would not ensure full recovery
 
Text size
Analysts in Pakistan believe in the absence of adequate business-friendly environment, the upcoming Rs 75 billion package for six export oriented sectors would not ensure full scale recovery of export oriented industry, say analysts. Reports say that Prime Minister Nawaz Sharif is likely to announce an incentive package for five or six export-oriented sectors to the tune of Rs 65-75 billion of which the textile sector would be the top beneficiary.

According to Zeeshan Azhar, an analyst at Foundation Securities feels, the package could go some way in making textile sector competitive internationally but core issues like uncompetitive exchange rate, higher electricity/gas prices, poor power supply, outdated technology, undiversified product base and low cotton quality will continue to hamper a full scale recovery of the sector.

The said incentives would add to the incentives already in place since the effect of Textile Policy FY14-19 and the FY17 budget. Currently, rebate on local tax varies between 1-4 per cent of Free on Board (FOB) value on 10 per cent incremental exports over last year.

This rebate could go up to 3-8 per cent of FOB value. The new tax rebate could be on 10 per cent incremental exports or be extended to full FOB value. The impact on companies' bottom line would be muted in the former case but sizable in the latter, Azhar added.

The government believes the package is necessary to encourage exporters who are struggling due to lower demand from major export markets, stable US dollar-Pakistani Rupee parity, and incentive package announced by competitors like India, Bangladesh and Vietnam. The downward trajectory in textile exports has shown some respite over the last two months but prognosis of the sector remains weak. The scope and impact of the upcoming textile package is still to be seen.

Source: Internet
Related Articles
Bangladesh's garment exports up 10 percent
Surge in cotton prices in Indian market drive textile mills to
Chinese invest US220mn in Billion Vietnam polyester synthetic fiber
FDI into Bangladesh see an upsurge, boost textiles sector
Bangladeshi PM assures full support to weaving sector
February textile exports down 2.53 percent YoY in Pakistan
Cambodia's exports up 18 percent in 2016
VN textile and garment to enjoy good growth in exports without TPP
Bangladesh cabinet approves the draft textile act 2017
India negotiating bilateral trade agreement with EU
 
Research
Changes in China's MEG inventory structure in 2016
Analysis on improved polyester end-user market demand in ...
Analysis on the surging nylon market in the fourth quarter ...
What will HC re-PSF market head for on dropping profits
China PET bottle chip export feature and export destination ...
Companies investing in Xinjiang really perform well?
 
 

浙公网安备 33010902000742号