Pakistan's National Assembly Secretariat “Questions for Oral Answers and their Replies"

Transcription

1. 1 (48th Session) NATIONAL ASSEMBLY SECRETARIAT ———— “QUESTIONS FOR ORAL ANSWERS AND THEIR REPLIES” to be asked at a sitting of the National Assembly to be held on Thursday, the 2nd November, 2017 156. *Ms. Nighat Parveen Mir: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state the year and country-wise bottled and canned milk imported during the last three years alongwith the animals to which it was related? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): Milk is imported in Pakistan in various forms, packaging and in different compositions. The quantity and value of milk imported during the last three years is tabulated as under: —————————————————————————————— Year Quantity (MT) Import Value (PKR Billion) —————————————————————————————— 2014-15 61,211 18.25 2015-16 68,247 17.78 2016-17 56,291 13.86 —————————————————————————————— Source: PRAL (FBR) The year and country-wise detail of bottled and canned milk imported during the last three years (FY-2014-15, 2015-16 and 2016-17) is attached as Annex-A. Computerized customs clearance system does not capture information/ data of the animals to which the imported milk is related.
2. 2 158 . *Shaikh Rohale Asghar: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state the steps taken by the present Government to increase trade relations with Senegal since June, 2013? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): Pakistan attaches high importance to its trade relations with Senegal. However, the volume of bilateral trade is far below from its potential. The bilateral trade is between US $ 40.00 million to US $ 50.00 million for the last several years. The detail of Pakistan and Senegal of last few years as under:
3. 3 US $ Million —————————————————————————————— Pakistan’s Pakistan’s Total Balance Years Exports Imports —————————————————————————————— 2011-12 36.310 8.421 44.731 27.889 2012-13 40.543 9.322 49.865 31.221 2013-14 06.604 8.624 15.228 -2.020 2014-15 36.805 4.088 40.893 32.716 2015-16 30.580 1.752 32.332 28.828 2016-17 15.23 0.74 15.97 14.49 July-April —————————————————————————————— The Ministry of Commerce has taken multiple initiatives to enhance trade between the two countries. Following steps have been taken by the present Government to increase trade relations with Senegal: 1. Inaugural Session of Pak-Senegal JMC was held on 20-21st July, 2017 at Dakar, Senegal chaired by Minister for Commerce from Pakistan side, in which important decisions were made by both sides to increase trade volume between the two countries. 2. Ministry of Commerce facilitated signing of MOU on the establishment of Joint Business Council (JBC) between Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Union of Chambers of Commerce & Industry and Agriculture of Senegal with the hope to enhance interaction and cooperation between private sectors of both countries on sidelines of JMC. 3. TDAP has relaxed the hospitality criteria for delegates from African countries including Senegal to attract more delegates and to ensure better participation from Africa in the upcoming Expo Pakistan 2017 to be held from 9-12 November, 2017. 4. Ministry of Commerce in consultation with its allied departments has prepared a comprehensive policy plan ‘Look Africa’ to give priority to Africa including Senegal for enhancement of Pakistan Africa Trade. 5. TDAP/MOC will arrange Priority Africa for trade seminars in major cities of Pakistan.
4. 4 163 . 6. TDAP will provide special subsidy (80-90%) to Pakistani companies to encourage their participation in trade exhibitions in Africa including Senegal and TDAP will sponsor delegations to and from Africa on regular basis. 7. Pakistan and Senegal agreed to address the difficulties of trade between the two countries; the Pakistan side has sought Senegal’s support to establish a trade partnership with the Economic Community of West African States (ECOWAS) and the West African Economic and Monetary Union (WAEMU). 8. The Pakistani side proposed to the Senegalese side in JMC meeting, the establishment of a Joint Working Group (JWG) on trade with the view of planning, implementing and monitoring plans and objectives in this area. The composition of JWG on trade from Pakistan side has been shared with Senegal. 9. TDAP will participate in Dakar International Trade Fair to be held in December, 2017 to showcase Pakistan’s Products. *Ms. Khalida Mansoor: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state: (a) the names of countries except Afghanistan with which agreements of Free Trade have been signed by Pakistan since June, 2013; and (b) the names of countries with which the agreements of Free Trade to be signed in the near future? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): (a) Pakistan has not signed any Free Trade Agreement (FTA) with any country since June, 2013. (b) Government of Pakistan is negotiating Free Trade Agreements with Thailand and Turkey which will be signed after conclusion of negotiations.
5. 5 166 . *Dr. Fouzia Hameed: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state the targets fixed and achieved by the Ministry and its attached/sub-ordinate departments during the last four years for exploring new international markets and organizing exhibitions of Pakistani products abroad? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): Commerce Division announced a three years Strategic Trade Policy Framework (STPF) 2015-18, which envisaged many initiatives for promotion of Pakistan trade. The initiatives, inter-alia, included; (a) (b) (c) (d) Enhancing Share in Existing Markets Sustaining GSP Plus in European Union Exploring New Markets Participation in trade fairs/exhibitions. (a) Enhancing Share in Existing Markets (i) China-Pak Free Trade Agreement (CPFTA) China-Pakistan Free Trade Agreement (CPFTA) on Trade in Goods was signed on 24th November, 2006 and implemented on 1st July 2007. Agreement on Trade in Services was signed on 21st February 2009 and is operational from 10th October 2009. Phase-I of CPFTAcompleted in 2012 with unequal gain for Pakistan. Pakistan’s exports increased by 139% and china’s by 239% since 2007-08. Negotiations for the 2nd phase of CPFTA are under way. Pakistan has raised its concerns on widening trade deficit and erosion of trade preferences. China has agreed to favourably consider elimination of tariff, on priority, on products of Pakistan’s export interest. (ii) Pak-Malaysia FTA The Comprehensive Free Trade Agreement (FTA) for Closer Economic Partnership between Pakistan and Malaysia was signed on 8th November, 2007 and became effective from 1st January, 2008. Under Malaysia-Pakistan Closer Economic Partnership
6. 6 Agreement (MPCEPA), a Joint Committee has been established to review the implementation and operation of this agreement. During the review meetings, both sides discussed the impact of existing arrangement and agreed to further deepen concessions on items of each other’s export interest. Both sides have shared items of each other’s interest. (iii) Pak-Indonesia PTA Under the umbrella of Comprehensive Economic Partnership Agreement (CEPA), Indonesia and Pakistan agreed to initially sign a Preferential Trade Agreement (PTA). The PTA was signed on 3rd February, 2012 and was operationalized on 1st September, 2013. During the first review meeting of Pak-Indonesia PTA in August, 2016, Pakistan side expressed concern over balance of trade being heavily skewed in favour of Indonesian side. During the last round held in August 2017, Indonesia agreed for following: to allow import of kinnow for entire season; to allow import of mangoes from Pakistan-the only country given such permission; to eliminate duty on two textile products from Pakistan; and, to consider positively reducing tariff on 20 products of Pakistan’s export interest. (iv) Pak-Sri Lanka FTA Pakistan concluded a Free Trade Agreement (FTA) with Sri Lanka on 1st August, 2002. And became operational from 12th June, 2005. Under the FTA, Sri Lanka and Pakistan have agreed to offer preferential market access to each other’s exports by way of granting tariff concessions. The 6th technical level meeting was chaired by the Commerce Secretaries of two countries in Colombo on 4th January, 2016 in which the prospects of broadening the scope of FTA by including chapters on Services and Investments were discussed and agreed, in principle. Consequently, Pakistan shared draft chapters on services and investment with Sri Lanka. (b) Sustaining GSP Plus in European Union As a result of qualification for GSP+ scheme, Pakistani products are enjoying duty free access in European Union since lst January, 2014. As a result of this arrangement Pakistan’s export to EU have
7. 7 increased from 4 .54 billion Euros in 2013 to 6.29 billion Euros in 2016. This represents an increase of more than 38%. This arrangement has helped Pakistani products to compete successfully with similar products originating from other competing countries. (c) Exploring New Markets (i) Pakistan Thailand FTA The Cabinet accorded approval to initiate negotiations on PakThailand FTA (PATHFTA) in its meeting on 24th August, 2015. Eight rounds of negotiations have been held so far. Both sides have completed the text of the agreement, shared their respective initial request lists and tariff reduction modalities. Efforts are being made to conclude Free Trade Agreement by end 2017. (ii) Pakistan-Turkey FTA Government of Pakistan is in process of negotiating comprehensive Free Trade Agreement (FTA) with Turkey to remove barriers to its exports in Turkish Market. This FTA covers trade in goods, trade in services and chapter on Investment. So far seven rounds of negotiations have been held. Efforts are being made for an early conclusion of FTA. (iii) Pak-Korea FTA Both sides have concluded a feasibility to explore the possibility of a Free Trade Agreement between the two countries. The joint recommendation prepared by both sides suggest on Free Trade Agreement between the two sides. (d) Participation in trade fairs/exhibitions In order to explore new markets for export of Pakistani products, Trade Development Authority of Pakistan participated in various trade
8. 8 exhibitions . A list of trade exhibitions in which Pakistan participated in last four years is annexed. Besides, TDAP holds Expo Pakistan annually in Karachi to showcase Pakistani products. Delegates and business Community from other countries participate in it. The expo Pakistan will be held in November this year. Besides TDAP, holds Single Country Exhibition in Colombo, Sri Lanka every year to showcase Pakistani products. TDAP also held a Single Country Exhibition in Kazakhstan with the name of Expo Astana, this year. (Annexure has been placed in the National Assembly Library). 169. *Ms. Asyia Naz Tanoli: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state: (a) the names of those countries with which Pakistan has signed profitable FTAs during the last four years; and (b) the names of those countries with which Pakistan has signed profitable PTAs during the said period? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): (a) Pakistan has not signed any Free Trade Agreement (FTA) with any country during the last four years. (b) Pakistan has signed a PTA with Indonesia in 2013. Trade deficit between the two countries has widened in favour of Indonesia during the said period, as import of palm oil shifted from Malaysia to Indonesia. Pakistan is presently conducting a review of the PTA with Indonesian side and efforts are at hand to rectify the widening trade deficit.
9. 9 29 . *Ms. Shagufta Jumani: (Deferred from 46th Session) Will the Minister for Commerce and Textile be pleased to state whether the Government is considering any extension of long term finance facility to support textile exports at large scale? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): The State Bank of Pakistan has been operating Long Term-Financing Facility (LTFF) to facilitate export growth. The loans are available up to ten years (including two years grace period) for import of machinery as well as locally manufactured machinery. The support is available to textiles value chain i.e. ginning, spinning, fabrics, made ups, towels, art silk & synthetic textiles and regeneration of textile wastes. The LTFF is available for large scale textile industry and also for SMEs at the rate of 5%. 20. *Dr. Nafisa Shah: (Deferred from 47th Session) Will the Minister for Commerce and Textile be pleased to state the steps taken by the Government to encourage Chinese manufacturers to relocate part of their production to Pakistan or integrate Pakistanmade parts and intermediate goods in their final assembly line by using the Free Trade Agreement? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): The China Pakistan Free Trade Agreement covering goods and investment was signed on 24th November, 2006, and implemented from 1st July 2007. Under the FTA, concessions were obtained in raw materials and intermediate goods so that Pakistan could become part of the Chinese value chains. As a result, exports of Pakistan increased from US$ 575 Million in the year 2006-07, to US$ 1463 Million in 2016-17 registering an increase of 154%. Presently, Ministry of Commerce is negotiating 2nd Phase of the FTA. The focus is on exchanging concessions in such areas where the strengths of the two countries complement each other thereby encouraging intra-industry trade. Furthermore, concessions are also being requested in the Chinese “Sunset” industrial sectors which would incentivize Chinese investors to relocate their production facilities in Pakistan. During the 8th round of negotiations of the 2nd Phase of CPFTA held on September 14-15, 2017 in Beijing, the Pakistan side made a detailed presentation
10. 10 on the investment opportunities in Pakistan and highlighted the incentives available under the various schemes . The Chinese side was requested to consider the re­location of export oriented Chinese Industry into Pakistan in sectors like Garments, Solar Panels, Mobile Phones, Electrical Equipment, Electronic and Food processing. The Chinese side appreciated Pakistan’s proposal and agreed to share the same with the relevant authorities to facilitate re-location of industry into Pakistan. 1. *Ms. Shaista Pervaiz: Will the Minister for Commerce and Textile be pleased to state the steps being taken by the Government to stop dumping of non-essential imports into Pakistan which are causing losses to the local industries of the country? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): During last 05 years, the National Tariff Commission Ministry of Commerce has initiated 43 anti-dumping cases. The Commission finalized / terminated 23 cases by imposing anti-dumping duties on various imported products to save the local industry of Pakistan. Furthermore, 20 cases are under process in the Commission. 2. *Ms. Khalida Mansoor: Will the Minister for Commerce and Textile be pleased to state the volume of trade between Pakistan and Belarus at present? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): The volume of trade between Pakistan and Belarus for the last 5 years is following USD 000 —————————————————————————————— 2012 2013 2014 2015 2016 —————————————————————————————— Exports 479 569 572 407 479 Imports 90,720 20,930 33,778 33,704 37,284 —————————————————————————————— 3. *Mr. Waseem Akhtar Shaikh: Will the Minister for Overseas Pakistanis and Human Resource Development be pleased to state:
11. 11 (a) whether it is a fact that the contributions being received by the Employees Old-Age Benefits Institution (EOBI) are less than the amount being handed out in pension payments annually; (b) if the answer to part (a) above is in the affirmative, whether there is any proposal under consideration of the Government to take action against the responsibles including the present Chairman of the EOBI within two months; if so, the details; if not, the reasons thereof? Minister for Overseas Pakistanis and Human Resource Development (Pir Syed Saddaruddin Shah Rashidi): (a) Annual contributions collected by Employees’ Old-Age Benefits Institution (EOBI) and pension payments disbursed by the Institution during the last five financial years is as follows: (Rs. In million) —————————————————————————————— Year Contribution Pension Excess/Deficit Collected Disbursed —————————————————————————————— 2012-13 10,846 (13,891) (3,045) 2013-14 12,727 (14,717) (1,990) 2014-15 13,007 (16,320) (3,313) 2015-16 15,335 (22,848) (7,513) 2016-17 18,330 (24,209) (5,879) —————————————————————————————— (b) The incumbent Chairman EOBI as assumed the charge on 13-01-2017. During his period, the deficit has been reduced from Rs. 7.513 billion to Rs. 5.879 billion. However the reasons for the deficit in contribution collection and pension disbursement are as under; (i) EOBI pension is increase on the basis of actuarial valuation of EOB Fund. The actuarial in its last report did not recommend the increase of pension. But the Government has increased the Minimum pension from Rs. 3600/- per month to Rs.5250/- per month on humanitarian ground in April, 2015. The annual financial impact of increased pension is Rs.6.667 billion. (ii) The amendment made in EOB Act, 1976 during 2005-2008 through Finance Acts have been declared unlawful by the Supreme Court of
12. 12 Pakistan in its judgment dated 10-11-2016 . The major implications of above judgment are as follows: (a) The Establishment having less than 10 persons have now gone out of the ambit of EOB Act; (b) All banks and banking companies become exempted from the net of EOBI; and (c) The rate of contribution from employees been reduced from 1% of minimum wages to Rs.20/- per month The Ministry has proposed a legislation to protect contributions already received upto 2016 to avoid refund. (iii) Number of pensioner are being increased at an average of 40,000 annually. (iv) After 18th constitutional amendments, the Sindh Government has enacted its own EOB Act, 2014. Under which the Federal EOB Act, 1976 has been repealed upto the extent of the Sindh Province. The Establishment based in Sindh are, therefore, reluctant to pay its contribution towards Federal EOBI. (v) However, despite all these adverse conditions, EOBI was able to increase its contribution collection up to 20% in 2016-17 from the previous year 2015­16. (vi) In order to resolve post devolution issues relating to EOBI and WWF, the matter has been referred to CCI. 4. *Ms. Musarat Rafique Mahesar: Will the Minister for Commerce and Textile be pleased to state: (a) the contribution of the industry in exports of the country during the last five years; and (b) the steps taken by the Government to improve the overall exports of the country since June, 2013?
13. 13 Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): (a) Contribution of Industry in Exports during last 5 years Source: PBS Unit: Million USD —————————————————————————————— Industry FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 —————————————————————————————— Textile 13,059.9 13,720.1 13,473.0 12,465.1 12,452.5 Petroleum Group & Coal 28.4 721.4 821.9 161.8 190.1 5,123.2 4,654.2 3,836.0 3,227.7 3,095.4 Chemicals & pharmaceutical 874.4 1,171.5 980.8 803.5 878.5 Engineering Goods 289.0 321.1 224.0 188.1 175.3 Total Exports 19,374.9 from Industry 20,588.3 19,335.7 16,846.2 16,791.8 Other manufactures Total Export 24,460.5 25,109.6 23,667.3 20,786.5 20,447.7 —————————————————————————————— (b) The following steps have been taken by the government to improve the overall exports of the Country since 2013: i. To enhance export competitiveness, the Government announced an Export Enhancement Package of PKR 180 billion for exporting business community, which is applicable for nearly 18 months from 16th January, 2017 to 30th June, 2018. This incentive for 2017-18 would be available to those exporters who would achieve an increase of 10% in annual exports. Out of the total annual allocation, an amount of PKR 107.5 billion has been allocated to the textile sector (PKR 87.5 billion for Draw Backs and PKR 20 billion for withdrawal of duties/taxes on import of cotton and machinery). An amount of PKR 12.5 billion is the annual allocation for Draw Backs on export of non-textiles (other value added sectors).
14. 14 ii . To further facilitate the Exporters, the existing package has been enhanced further vide Economic Co-ordination Committee (ECC) of the Cabinet decision dated 6th October 2017. The salient features are as under: a. 50 percent of the rate of incentive for the eligible textile and non-textile sectors already announced in the PM package shall be provided on the same terms as for the period January to June, 2017 i.e. without condition of increment. b. Remaining 50 percent of the rate of incentive shall be provided, if the exporter achieves an increase of 10 percent or more in exports as compared to corresponding period of the last year c. An additional 2% drawback shall be provided to non­traditional markets i.e. Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania as the same condition as in sub-para (a) and (b). iii. Under the Strategic Trade Policy Framework (STPF), 2015-18, a total of Rs. 6 billion is allocated in the current year for export sector development. The initiatives inter-alia include: a. Technology Up-gradation: An incentive for technology up-gradation in the shape of investment support of 20% and mark-up support of 50% upto a maximum of Rs. 1 (one) Million per annum per company for import of new plant and machinery. b. Product Development: Matching grant upto a maximum of Rs. 5 (five) Million for specified plant and machinery or specified items to improve product design and encourage innovation in SMEs and export sectors of leather, pharmaceutical and fisheries. c. Branding & Certification Development Support: Matching grant to facilitate the branding and certification for faster growth of the SME and export sector in Pakistan’s economy through Intellectual Property Registration (including trade and service marks), Certification and Accreditation.
15. 15 d . iv. Draw-back for local taxes and levies (DLTL): DLTL is being given to exporters on free on board (FOB) values of their enhanced exports if increased by 10% and beyond (over last year’s exports) at the rate of 4% on increased exports. For export promotion and enhancing product diversification in the value added sectors, the Strategic Trade Policy Framework (STPF), 2012-15 announced the following initiatives: a. Marketing Development Assistance for Regional countries b. Encouraging opening of retail outlets abroad c. Subsidizing 50% Cost of Plant and Machinery for Dates and Olive Processing d. Subsidizing 50% cost of plant and machinery for establishing processing plants for fruits and vegetables in Gilgit - Baltistan (GB) e. Mark-up subsidy @ 50% of the prevailing mark-up rate, for setting up of Meat processing plants in bordering provinces f. Mark-up subsidy @ 100% of the prevailing mark-up rate and 50 % subsidy for wire saw cutting machinery to reduce wastages for establishing mining and processing in KPK, GB and Baluchistan v. Availability of affordable finance for the export sector provided by maintaining the discount rate at 5.75%, whereas, the Export Finance Rate is currently at 3%. vi. EXIM Bank is being established to facilitate export credit and for reducing cost of borrowing for exporting sectors on long term basis. This will also reduce their risks through export credit guarantees and insurance facilities. vii. Federal Cabinet has approved resumption of banking channels between State Bank of Pakistan and Central Bank of Iran, which will boost Pak rice exports substantially.
16. 16 @5. viii. There is consistent effort for negotiating additional market access for Pakistani products in the target markets — FTA negotiations with Turkey and Thailand are at any advanced stage, negotiations with Iran on FTA are being initiated, and a joint research study to assess the potential for a preferential arrangement with Korea is underway. ix. To further diversity export markets, a “Look Africa” policy has been launched by the Ministry of Commerce to promote and facilitate trade to new markets. *Ms. Aisha Syed: Will the Minister for Foreign Affairs be pleased to state: (a) the grounds on which Government grants custody of children to the different families in European Countries; and (b) whether it is a fact that if it happens with any other country’s people their Government takes stand about them but our Ministry keeps silent in this regard; if so, the reasons thereof? Minister for Foreign Affairs (Khawaja Muhammad Asif): (a) The cases of custody of children are dealt on the advice/guidance of Law Division and due consultation with the Ministry of Interior. Since Ministry of Foreign Affairs has no legal purview in matters pertaining to private persons’ cases of family and custody of minors, such matters are referred to concerned departments and responses are submitted in courts accordingly. Pakistan is signatory to The Hague Convention on Civil Aspects of International Child Abduction (1980). The advice/guidance of Law Division in light of this convention is followed while dealing with such cases. (b) Ministry of Foreign Affairs accords utmost priority to facilitate and help Overseas Pakistanis. It is worth mentioning that all matters involving foreign governments are subject to local laws and authority of that Government. Custody cases of minors generally pertain to nationality, citizenship & naturalization of the child as well as physical custody by either of the parents. These subjects come under the jurisdiction of Ministry of Interior and orders of the relevant Court. —————————————————————————————— @ Transferred from Overseas Pakistanis and Human Resource Development Division.
17. 17 6 . *Ms. Suraiya Jatoi: Will the Minister for Commerce and Textile be pleased to state: (a) whether it is a fact that a trade agreement is going to be signed with Vietnam; if so, the details thereof; (b) whether it is also a fact that the said agreement will lead to imports of expensive value added products and exports of cheap resource-based goods; and (c) how said agreement will become economically beneficial for the country? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): (a) At present, no Trade Agreement between Pakistan and Vietnam is being signed. However, during the Fourth Round of the Joint Trade Commission, held in Islamabad on 4th, 5th October 2017, both sides agreed to explore the possibility of signing a Preferential Trade Agreement (PTA). In this regard it has been agreed to exchange lists of respective priority items of export interest to gauge complementarities and feasibility of a PTA. (b) Since, the lists of priority items is yet to be exchanged and then undergo analysis, it is premature to comment as to whether the proposed Agreement would lead to import of value added products and export of resource based goods. However, as a general principle, finished goods are protected in FTAs/ PTAs especially the ones being locally manufactured, while concessions are granted on raw materials and intermediary goods to benefit the local industry and promote value addition. (c) The projections on economic gains of the Agreement can only be made after a detailed analysis of the priority items. 7. *Ms. Munaza Hassan: Will the Minister for Commerce and Textile be pleased to state: (a) whether it is a fact that Pakistan is losing its export markets, with  particular reference to its value-added exports especially in textile sector; if so, the reasons thereof;
18. 18 (b) the volume of the country exports with particular reference to textile exports during the last four years alongwith year wise breakup thereof; and (c) the steps taken by the present Government to make the country a trading hub? Minister for Commerce and Textile (Mr. Muhammad Pervaiz Malik): (a) Textile exports has increased by 0.04% in 2016-17 compared to 2015-16;  Month on Month, September 2017-18 textile exports imcreased by 12.44% compared to september 2016-17  Month on Month, August 2017-18 textile exports increased by 8.55% compared to August 2016-17  Month on Month, July 2017-18 textile export increased by 2.78% compared to July 2016-17  July-September 2017-18 textile exports increased by 7.91% compared to July-September 2016-17 Textile Exports July-June 216-17 compared to July-June 2015-16 in terms of value Million $: —————————————————————————————— Sr. No. Sub-Sector July-June July-June % increase/ 2016-17 2015-16 decrease —————————————————————————————— 1 Cotton 43 77 -44 2 Cotton Yarn 1,243 1,261 -2 3 Cotton Cloth 2,120 2,214 -4 4 Knitwear 2,362 2,364 -0.7 5 Bedwear 2,133 2,019 6 6 Towel 786 803 -2 7 Readymade Garments 2,317 2,195 6 8 Others 1,449 1,514 -4 —————————————————————————————— Total 12,453 12,447 0.04 ——————————————————————————————
19. 19 (b) —————————————————————————————— Sr. Sub-Sector July-June July-June July-June July-June July-June 2016-17 2015-16 2014-15 2013-14 2012-13 ————————————————————————————————————— 1 Cotton (MT) 24,976 49,550 94,074 114,794 92,538 2 Cotton Yarn 455,345 447,903 642,052 663,354 737,586 3 Cotton Cloth (Million SQM) 1,961 2,106 2,074 2,351 2,160 4 Knitwear (Million Doz) 113 112 104 116 98 5 Bedwear (MT) 353,108 326,574 324,551 316,417 263,572 6 Towel (MT) 182,873 184,479 172,156 171,323 170,114 7 Readymade Garments (Million Doz) 35 33 31 30 27 —————————————————————————————— (c) The Prime Minister has announced package in January 2017 for Textile Industry which is as following: —————————————————————————————— Sector Duty Drawback —————————————————————————————— Textile Garments 7% Made-ups 6% Proceed Fabric 5% Yarn and Greige Fabric 4% —————————————————————————————— Other Facilities —————————————————————————————— S# Subject —————————————————————————————— 1 Withdrawal of Custom duty & sales tax on cotton imports (Till July 15th, 2017 in view of domestic cotton arrival) 2 Withdrawal of Custom duty on MMF (other than Polyester) 3 Zero rating of textile machinery imports ——————————————————————————————
20. 20 Further , Rs 14billion has been released to State Bank of Pakistan for disbursement in PM Package. Amendments in Prime Minister’s Package a. 50 percent of the rate of drawback shall be provided without condition of increment. b. Remaining 50 percent of the rate of drawback shall be provided, if the exporter achieves an increase of 10% or more in exports during financial year 2017-18 as compared to the financial year 2016-17. c. The actual rate of drawback against (b) above shall be determined on the basis of annual performance of the exporter, but in order to improve her/his cash flow, the disbursement against (b) above shall be allowed on the performance during July-December, 2017 subject to submission of bank guarantee that the exporter will return the excess amount, in case his/her annual exports are less than the amount of drawback paid to him/her. d. An additional 2% drawback shall be allowed for exports to nontraditional markets — Africa, Latin America, non-EU European countries, Commonwealth of Independent States and Oceania e. In order to facilitate the exporters in prompt payment of refunds, it is also proposed that SB may be instructed to release the amounts of claims of exporters through the banks immediately upon realization of export proceeds in cases as per (a) and (d) above, and upon verification of claims in cases as per (b) and (c) above; SBP may get re-imbursement from the Finance Division after such payments have been made. SBP in consultation with the. Commerce Division and stakeholders shall devise mechanism to ensure prompt clearance of drawback claims in compliance of this decision. Notification in this regard has been issued on 20th October, 2017. The Government has offered various incentives and details are as follows; • Sales Tax of five export oriented sectors namely textile, leather, sports goods, surgical goods and carpets has been made part of zero rated tax regime from July 1, 2016.