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Friday May 28 2021

Targeted subsidies for export sector to be announced in upcoming budget

  • Govt mulls targeted subsidies for export sector.
  • Finance and Revenue Shaukat Tarin reiterates firm commitment for accelerated growth.
  • In the next budget, subsidies will be given on the basis of actual consumption.

ISLAMABAD: Targeted subsidies will be announced in the upcoming budget for the export-oriented sector base on performance, the government has decided .

The decision was taken during a meeting presided over by Minister for Finance and Revenue Shaukat Tarin to discuss the new tariff for the industry/ export-oriented sectors in the upcoming budget.

Tarin reiterated his firm commitment for accelerated growth, with the willing contribution of the business community.

Read more: Pakistan's exports reach decade-high of $2.3b in March

In the next budget, subsidies will be given on the basis of actual consumption and a more targeted approach for disbursement would be adopted.

The growth of the export-oriented sector will be the main objective of the government while offering any change/consistency in the rates, it was decided. This way, the industry will use its full potential.

Minister for Industries and Production Khusro Bakhtyar and Minister for Energy Hammad Azhar were also present in the meeting along with Adviser to the Prime Minister on Commerce Razak Dawood.

Different options for concessional tariff were discussed in the meeting along with their implications on the subsidies, earnings, production and revenue generation.

Read more: EU accepts Pakistani rice exporters' plea on why India shouldn't get exclusive rights to export basmati

The meeting noted that there is a need to generate a database which could establish the nexus between tariffs and progress of the export-oriented sectors/industry.