Over the past sixteen months, more than 1,600 textile factories in thecountry have ceased operations, as revealed by Interim Commerce MinisterDr. Gohar Ijaz. This alarming trend has cast a shadow across the entiretextile industry, encompassing every aspect of its value chain, fromginning and weaving to spinning, processing, and garment manufacturing.Additionally, many of the remaining industries are grappling with reducedproduction levels, further exacerbating the sector’s challenges.
Dr. Gohar Ijaz underscored that approximately 20 percent of the textile andclothing sector’s total installed capacity has been negatively affectedduring this 16-month period. The ramifications of this decline inproduction capacity have been felt across the industry, affectingemployment, exports, and overall economic stability.
In response to these issues, the commerce minister announced that thegovernment is in the final stages of developing a comprehensive strategicframework. This framework aims to address the challenges faced by thetextile sector by providing solutions such as competitive energy pricing ata regional level, working capital support, expedited refund payments,improved market access, and diversification of product offerings. Theintroduction of these policies is expected to revitalize the textileindustry and unlock its full production potential within the country.
The latest statistics from the Pakistan Bureau of Statistics (PBS) revealedthat in August 2023, the country’s exports stood at $2.36 billion,representing a 4.8 percent decrease compared to the $2.48 billion recordedin August 2022. However, there was a notable 14.3 percent increase comparedto the $2.07 billion in exports from the previous month. Dr. Gohar Ijazattributed this month-on-month growth to the positive impact of thepolicies implemented by the caretaker government, which came into office onAugust 17.
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Furthermore, the commerce minister announced that the Federal Board ofRevenue (FBR) would be transferring Rs. 31 to exporters’ accounts shortly.This payment would be followed by additional refund payments aimed ataddressing the working capital challenges faced by exporters, providingsome relief to the struggling industry. These developments are criticalsteps towards revitalizing Pakistan’s textile sector and ensuring itslong-term sustainability
