Adviser to Prime Minister on Commerce and Investment, Abdul Razak Dawood, speaking to a media outlet informed that Pakistan’s industry is running close to its 100 percent capacity.
He said that the industrial base has also started expansion, which can be clearly inferred from increasing imports of machinery. The government has been offering incentives to promote industrialization, and following the current expansion, the industrial activity in the country is likely to go up.
The government has provided a temporary economic refinance facility (TERF) of Rs. 100 billion to the business community for the import of machinery to achieve sustainable industrialization, and according to the SAPM many industrialists have started importing machinery under the initiative.
The industrialists can avail TERF initiative till March 31, 2021, under which they can avail financing at a 5 percent interest rate.
Dawood informed that exports in services have increased by 46 percent in five months of the current financial year, despite the downward pressures caused by the COVID-19 pandemic. However, because of the drastic decrease in Pakistan’s cotton production, the imports of the textile sector have also gone up. The SAPM informed that the industrialists will have to import five million cotton, costing $1.2 billion to meet the textile export orders. At the same time, diversification in textile exports has gained momentum for Pakistan.
The government will continue to provide the incentives in the shape of drawbacks of local taxes and levies (DLTL), said Dawood, adding that the facility will not be available for export of yarn and grey cloth.