ECC to approve five year textile policy to increase exports to $ 21 billion.
Parliamentary secretary for commerce Aliya Hamza Malik said that Prime Minister had already approved textile policy.
ECC to approve five year textile policy to increase exports
That policy would come before the ECC next week.
After ECC approval, the policy would become a pubic document.
Furthermore, Aliya said that the PTI government had granted Rs900 billion ($5.6 billion) in incentives to the textile sector in the new policy.
Despite slow down of COVID-19, Pakistan’s textile sector reached $6 billion exports in the first five months of current fiscal year (July-November 2020).
Notably it noted 62 percent of total exports (worth $9.7 billion).
According to the official data, it came as almost 5 percent higher compared to the same period last year.
Government set target
Meanwhile, the Ministry has decided to set the target of value added and textiles at $20.865 billion.
Of that $16.294 billion will be value added sector and $4.571 billion for textile sector by 2020-25.
Earlier, the CCAC (Cotton Crop Assessment Committee) in its first meeting was informed that estimated production cotton bales in Punjab would be 5.3 million bales against a target of 6 million bales.
Similarly, Sindh produce of cotton likely to stand at 03 million bales against a target of 4.60 million bales.
Khyber Pakhtunkhwa likely to produce 6,500 bales, while Balochistan may produce 291,000 bales.
However, APTMA remains hopeful that the tariff cuts will prove instrumental in achieving the export increase identified.
Moreover, the consistency in electricity and gas tariffs will also attract investment in textiles and apparel value chain.
Pakistan textiles, woven and knitted apparel, socks and towels have the partners like Puma , Nike, Ralph Lauren, Dunelm, Warner Bros, Next, M&S , Bed Bath & Beyond, Macy’s, Zara , Mango, Levies and Hugo Boss.
In the proposed electricity would be provided to the industry at the rate of US cents 7.5/kWh, RLNG at $6.5/MMBtu and system gas at Rs 786/MMBtu under the new policy.
Tariffs reductions to the establishment of the Brand Development Fund (BDF) to the Long-Term Financing Facility (LTFF) and Export Financing Scheme (EFS) are included in the policy.
While major focus on value addition, the authorities deem textile exports during the next five years achievable.
It remain achievable despite last two textile policies 2009-14 and 2014-19, which aimed $25 billion and $ 26 billion dollars respectively failed to achieve export targets.