Leading Issues in the Economy of Pakistan: Agenda for Reforms Table 15.6: Growth in Value, Unit Value and Volume of Exports in Different Periods Annual Growth Rate(%) Value (in$) Unit Value (in$) Volume REER 2000-01 to 2005-06 12.2 2.4 9.8 1.0 2005-06 to 2010-11 8.1 7.6 0.5 0.2 2010-11 to 2015-16-4.3-2.1-2.2 2.9 2015-16 to 2021-22 1.9-5.4 7.3-5.3 2000-01 to 2021-22 4.6 1.0 3.6 0.0 Source: World Bank, WDI. There is need for a comprehensive review of export policies. The current account deficit has risen once again to$17.4 billion in 2021-22, equivalent to 4.6 percent of the GDP. There is need to learn from the success of countries like Bangladesh and India in South Asia and Thailand in East Asia. Chart 15.1 presents the prevailing export incentives and institutions in a sample of countries. As compared to India, Bangladesh and Thailand, Pakistan does not offer now the following for export: • Concessional export finance, which was withdrawn recently • Full export insurance, guarantees and quality management • Export cash incentive • Export performance requirement for access to incentives There was a time when exporters of Pakistan were receiving a number of incentives as following: • Lower income tax • Concessional export finance • Lower energy cost • Zero rating of domestic sales tax Combined, these were equal to a 12.5 percent higher export price. The classic case of an export cash incentive is that of Bangladesh. An export cash incentive of 2 percent to 20 percent on the export price is offered on 24 export products. The rate is higher for more valued-added exports, emerging exports and on exports to new markets. India operates a duty scrip scheme. Thailand allows the double input tax deduction on domestic sales tax paid by exporters. 146