The government has not announced any incentive for the ailing textile sector to boost dwindling exports. The textile sector accounting for 57 per cent of total exports, performed poorly as its exports fell 2.5 per cent. The Economic Survey 2007-08, while giving first nine months’ performance of the sector, clearly depicted poor performance of textile products. Except for raw cotton, knitwear, made-up articles and other textile materials, the rest of the products showed a negative growth. The textile ministry, in an Economic Coordination Committee (ECC) meeting on June 3, submitted a proposal to allocate PKR 30 billion under the head of additional duty drawback for the sector, but the committee scrapped the scheme, saying the sector did not deserve it.

The business community has termed the budget as pro-poor and pro-agriculture. They said the incentives announced in the budget will hopefully boost production of food items and other agriculture products and boost employment. The business community however, criticised the increase in the rate of sales tax, specially, at a time when the industry was already facing a higher cost of doing business in the country. They welcomed the government’s earlier announcement before the budget that the country will have an additional 2200 megawatts of electricity by next year and said that it will be very encouraging as the industry needed uninterrupted power supply.