In an unprecedented development, Pakistan government targets $50 billions textile exports
ISLAMABAD: In an unprecedented development, Pakistan government targets $50 billions textile exports by 2030 under new textile policy draft.
The draft of Pakistan Textile Policy for 2020-25 with four tier strategy and 21 recommendations is all set to be pitched any time before the ECC (Economic Coordination Committee) for approval. It will try to increase the country’s textile exports target by 2025 to $25.3 billion and $50 billion by 2030. It was $13.33 billion in 2018.
The Pakistan Textile Policy draft narrates a clear roadmap to achieve the textile export targets along with vision to fully utilize the potential of home-grown cotton augmented by Manmade Fibre/Filament to boost value added exports and become a major player in the global textiles supply chain.
The draft of Textile Policy also spells out its the objectives which include 1) Restoring profitability of cotton farmers by increasing cotton yield, improving quality of cotton and decreasing cost of production for the farmers; 2) Strengthening manmade fiber/filament sector to make this chain internationally competitive and export oriented;
3) Regionally competitive energy pricing fixed for five years; 4) Prompt Sales Tax Refund System; 5) Abolition of Zero- Rating has created serious liquidity crisis for exporting sectors as the current refund system is soaking up market liquidity and is not working; 6) Long Term Financing Facility for the entire textile value chain; 7) Revival of impaired textile capacity and introduction of bankruptcy law. 8) Establishment of Textile clusters and Export Processing Zones with plug and play facilities.
It says that the global textile trade that stands at $837 billion had an average growth rate of 0.1% over the last decade. When it comes to the global market for textile sector exports, it is dominated by China, which accounts for over 32pc of textile sector exports, valued at $266 billion.
Presently, Pakistan’s share is 1.6pc in the world textile trade, which will be increased to 3 percent by 2025. The world textile export that stands at $837 billion will reach $843.35.