In a bid to boost exports of its services sector, the Pakistani government is set to establish a Services Export Development Council (SEDC).
The SEDC aims to encourage fresh investments in export-oriented industries including leather, engineering and computer-related services to increase their products.
The services sector contributes 55% to the country’s GDP but its exports have failed to reflect this potential.
Reports circulating state that a mark-up support of 2% on prevailing Long Term Financing Facility (LTFF) for future import purchase of machinery has been decided.
To promote the value-added sector, a further mark-up reduction of 1.5% from the prevailing rates (8.4%) of the Export Finance Scheme (EFS) will be provided to fish and fish preparation, processed foods, meat and meat preparations, sports goods, footwear, leather products and surgical goods.
Additionally, a subsidy is provided on the opening of retail sale outlets which will be provided up to 75%, 50%, and 25% a year 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 a 50% subsidy in the cost of plants and machinery for dates and olive processing to increase income of farmers and foreign exchange earnings.