ISLAMABAD Jan 10 Pakistan's government on
Tuesday announced a raft of tax cuts and incentives aimed at
reviving the struggling textiles industry, state-run media said.
Textiles make up more than half of Pakistan's exports, but
it has lost ground to South Asian neighbours in recent years,
hurt by chronic energy shortages and underinvestment in
Prime Minister Nawaz Sharif announced a package of
incentives worth 180 billion rupees ($1.72 billion) after a
meeting with top exporters, state-run Radio Pakistan said.
It quoted Finance Minister Ishaq Dar as saying the customs
duty and sales tax on import of cotton had been abolished, with
a sales tax on imports of textile machinery scrapped.
Falling exports have become a major concern for the
government at a time when remittances from abroad are also
falling, potentially putting pressure on the currency.
Improved security across Pakistan is also more likely to
attract foreign customers and investors to the textiles
industry, officials say.
($1=104.7500 Pakistani rupees)
(Reporting by Drazen Jorgic; Editing by Clarence Fernandez)