The textile industry is the backbone of Pakistan’s economy.
In this era of COVID-19 pandemic, where global industries are suffering from severe economical issues, Pakistan’s Textile Industry has bounced back even stronger.
According to a local news source, the domestic industry is already planning expansion and is ready to invest billion across the textile chain to double our exports by 2025.
The data shows that the textile shipments have surged by 3.8 percent to $4.8 billion between July and October from $4.6bn a year ago. The rise in the textile and clothing group has been a little faster than the 0.6 percent growth in the overall export growth. The export recovery is most prominent in the knitwear, home textiles, and denim segments.
The Government has recently announced a lucrative energy package for the industry to help the exporters recuperate from the Covid 19 shock.
The package does away with peak electricity rates, offers reduced tariffs on additional power consumption, and fixes power price at $0.07 a unit and gas tariff at 07 a unit and gas tariff at $0..
065mmbtu for the export industries.
The current Government is also providing relief to industries under the Export Financing Scheme (EFS) and the Long-Term Financing Facility (LTFF). In addition to that, the central bank has reduced interest rates by 625bps, approved refinancing of wages to prevent layoffs during lockdown period, and deferred payments of the principal amount of loans as part of the debt restructuring offered to households and businesses. These are the plus signs for the textile industry of Pakistan.
