The government on Friday announced that the special package unveiled last year under the Textile Policy 2014-19 will remain available for the sector during 2015-16 as well.
In his budget speech, Finance Minister Ishaq Dar said that under the Textile Policy 2014-19 financial package of Rs64.15 billion has been approved in order to double the textile exports and create 3 million additional jobs by the year 2019.
The benefit of drawback of local taxes and levies scheme will remain available to the exporters in 2015-16 under which they would be entitled to the drawback on FOB values of their enhanced exports if increased beyond 10 per cent of their previous year’s exports, as per the rates: garments (4pc), made-ups (2pc); and processed fabric (1pc).
From July 1, 2015, export refinance facility and long-term finance facility will be available to textile exporters at 4.5pc and 6pc, respectively.
The customs duty on import of textile machinery under SRO809 is zero for 2015-16 as well.
As per the provisions of the textile policy a technology up-gradation fund scheme would be launched in 2015-16 to facilitate and incentivise the investments in plants and machinery.
Dar said the government was committed to introducing latest seed technology. To this end, amendments in Seed Act have been passed by the National Assembly, whereas Plants Breeders Right Act will be also be promulgated on priority basis.