The Ministry of Commerce has released Rs6 billion under duty drawback on local taxes and levies (DLTL) scheme, informed Advisor to Prime Minister on Trade and Investment Abdul Razak Dawood on Tuesday.

“I am glad to share that the Ministry of Commerce (MOC) has released a total of Rs6bn under DLTL schemes,” said Dawood, adding that this includes Rs5.6 billion for the textile sector and Rs400 million for the non-textile sector.

“I hope this will contribute to improving the liquidity issues of our exporters and enable them to enhance Pakistan’s exports,” he said.

Increasing exports is vital for Pakistan’s economy that struggles with an increasing current account deficit and pressure of repaying multi-billion dollars of loans taken from international lenders.

For this purpose, the government has initiated a 'Make in Pakistan' trade policy, which aims to introduce Pakistan's traditional and non-traditional export sectors and local products in the international trade market.

Just days ago, Dawood expressed hope that by the last fiscal year of the current government's tenure, ie, 2023, the country's exports would reach $50 billion by following the policy of trade diversification in potential trade sectors and markets.

Dawood optimistic about $50bn export target prospects

As per the Pakistan Bureau of Statistics (PBS), during FY 2021, exports increased by 18.3% to $25.3 billion ($21.4 billion last year). Major exported commodities included knitwear, posting growth of 36.6%, Readymade garments; 18.8%, Bed wear; 28.9%, Towel; 31.8%, carpet, rugs & mats; 36.9%, leather manufactured; 18.7%, while Fish and fish preparations posted 1.9% growth.

Meanwhile, Pakistan’s exports figures during the first month of the current fiscal year amounted to $2.3 billion, the highest figures in July showing a percentage growth of 17.3% as compared to $2 billion in July 2020.