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The Operation of the Export Bonus Scheme in Pakistan's Jute and Cotton Industries

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  • QAZI KHOLIQUZZAMAN Ahmad

    (Pakistan Institute of Development Economics.)

Abstract

The author's intention is essentially to extend the Bruton and Bose study of the Pakistan Export Bonus Scheme [1], in terms of both time and commodity. However, in this paper we examine the operation of the scheme in jute and cotton industries only. In our next paper, which is now in process, we take up the other industries covered in [1] and also a few' more. Very briefly, the scheme works in the following wayt. The exporter of a "bonus commodity" surrenders his foreign exchange earnings to the State Bank of Pakistan and receives, in addition to the rupee equivalent, a voucher that entitles its owner to purchase foreign exchange equal in value to 20 or 30 per cent (depending on the commodity exported) of the amount earned. The voucher can be utilised for obtaining foreign exchange for use in a) importing a wide range of goods, b) business travels and c) opening and maintaining commercial offices abroad.

Suggested Citation

  • QAZI KHOLIQUZZAMAN Ahmad, 1966. "The Operation of the Export Bonus Scheme in Pakistan's Jute and Cotton Industries," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 6(1), pages 1-37.
    • Handle: RePEc:pid:journl:v:6:y:1966:i:1:p:1-37
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