The government has given enough incentives to exporters to achieve the target of $17 billion during FY 2005-06, senior officials of Commerce Ministry told Business Recorder here on Wednesday.
They said that Rapid Export Growth Strategy (REGS) of the government envisages diversification of exports, greater market access and facilities. 6 percent Research and Development (R&D) support has been given to protect garments industry from a potential loss of $400 million in exports and 500,000 jobs in SME sector. The garment factories will be able to operate seven days a week and increase the daily working hours.
In addition to that, the sources said that in order to facilitate exporters, 75 percent of the certification cost of the internationally accepted laboratories, verified by the concerned Pakistan embassies will be paid for by the Export Development Fund with maximum fixed amount of $2000 per certification.
They pointed out that the government has already exempted the textile machinery from sales tax and customs duty and ensured availability of sufficient raw material for the invigorated textile industry which recorded 10 percent increase in exports despite withdrawal of some concessions by the EU countries and end of quota system with the advent of WTO era from 1st January 2005.
Referring to various appeals issued by some segments of the textile industry in connection with the reduction of cost of production, the sources however emphasised that in an era of free market economy our industrialists, exporters and various institutions of the government would have to act in a unison to complete with rest of the world.
The sources said that Pakistan was hosting the WTO- G 20 conference in Islamabad next month to formulate a joint strategy to negotiate with the industrialised and developed countries in the next round of talks with particular reference to WTO problems faced by the developing countries.