KARACHI: The members of prime export oriented leather and textile sector expressed their confidence that they would able to achieve their desired objectives to increase exports in 2017 over the previous year after the PM's Incentive Package announcement.
Hailing bailout, Incentives Package announced by the government, member units of these sectors said the package with the incentives for Drawback on Local Taxes and Levies (DLTL) and removal of Customs Duty on basic raw material at import level would greatly help to enhance export volumes.
Agha Saiddain, Senior Executive member Pakistan Tanners Association (PTA) said, "We will be able to make our comeback in the billion dollar export club as the leather sector witnessed a around 28 percent decline in volumes and around 13 percent in value during January to June 2016".
DLTL on finished leather at 7 percent and early announcement for the removal of Custom Duty at 4 percent on import of our basic raw material raw hides and skins which was in final consideration would help the sector come out of a downward trend, he added.
PTA members/leather exporters to penetrate the international market with a competitive edge at par with neighboring competing countries to get back the market share which we were loosing gradually, said Anjum Zafar, Chairman PTA.
The sector would to achieve the desired goals/objective to increase the export at 10 percent or more, he added.
Imported raw hides and skins are eventually re-exported after value addition and earn precious foreign exchange for the country.
The 2nd biggest export oriented manufacturing sector of the country, contributing 5 percent to the country's Gross Domestic Products.
The cluster of textile made up export oriented industry appreciated the decision for the incentives.
Ghulam Rabbani senior member Pakistan Yarn Merchants Association said the package including removal of Custom Duty on imports of cotton would greatly help the textile made up garments and yarn sector to meet lint demands. They were confident that the government would consider the remaining demands of these sectors to be incorporated in the upcoming federal budget for year 2017-18 to facilitate/equip member exporters to get the best results for the promotion of exports as per the aspirations of the government.
PTA and Textile sector members thanked the Prime Minister, Nawaz Sharif and Federal Finance Minister Ishaq Dar and Commerce Minister Khurram Dastgir for the announcement of the lucrative incentives packages.