In a bid to boost exports of the country’s services sector, the government is all set to establish a Services Export Development Council (SEDC). The sector contributes 55% to the country’s GDP but its exports have failed to reflect this potential.
Sources at the commerce division, while enumerating steps being taken to enhance exports, said that the mark-up support of 2% on prevailing Long Term Financing Facility (LTFF) for future import purchase of machinery has been decided.
This has been announced to encourage fresh investments in export-oriented industries including leather, engineering and computer-related services to increase their products.
The sources said to promote the value-added sector, a further markup reduction of 1.5% from the prevailing rates (8.4%) of Export Finance Scheme (EFS) will be provided to fish and fish preparation, processed foods, meat and meat preparations, sports goods, footwear, leather products, surgical goods.
Additionally, subsidy is provided on the opening of retail sale outlets which will be provided up to 75%, 50%, and 25% per annum of the rental cost in the export markets in Asia, Africa and Australia to support the initiative and motivate exporters.
The government also plans to provide 50% subsidy in the cost of plants and machinery for dates and olive processing to increase income of farmers and foreign exchange earnings.
Published in The Express Tribune, June 3rd, 2014.