Page 9 - TEXtalks January/February 2022

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Economic Coordination Committee (ECC) of the with its regional competitors. The government
Cabinet approved Textiles and Apparel Policy, has rationalized the tariff, and in this regard, and
2020-25 with certain amendments. The Ministry reduced the duties in many areas of textile from
of Commerce submitted revised Textiles and zero to 50 %. Similarly, for the textiles machinery
Apparel Policy, 2020-25, after incorporating a few being imported, the duties have been reduced so
changes and an implementation report. The ECC that modern machinery can be brought into the
Pakistan submitted by the Ministry of Communication to introduced in the global competitive market.
discussed in detail and approved the summary
textile industry and its products can be
issue a sovereign guarantee or SBLC worth Rs.
6944.0 million against Operational Viability Gap
Pakistan's textile sector can deliver the set target
envisages $200b Funding (VGF) for constructing Sialkot (Sambrial) of $200 billion as in textile value-added, Pakistan
– Kharian Motorway project on a BOT basis.
is second in home textile, second in Towel, third
in hosiery, and 17th in Apparel. Pakistan is ranked
5th globally in cotton and yarn production and
The Ministry of Energy, Petroleum Division
2nd in fabrics. The textile sector employs about
submitted a summary on 15 years' extension of
exports by FY25 the lease contract between Saindak Metals 40% of the industrial workforce in South Asian
countries, consumes almost 40% of banking
Limited and MCC China for the Saindak
credit for manufacturing, and accounts for 8.5%
Copper-Gold Project. After a detailed discussion,
of the gross domestic product. The share of
the ECC allowed the extension of the lease
with the approval contract and recommended reviewing the project's textile exports in the world stood at $1 trillion
while IT exports were hovering around $5 trillion,
financial aspect annually by professional expertise.
so Pakistan's real potential lies in IT,
The ECC also approved the Ministry of Energy,
pharmaceutical, and other products. Pakistan's
share in the world's textile exports stood at 1.8%,
Petroleum Division's summary on the
of textile policy determination of RLNG sale price for PLL's supply and there was a dire need to bring geographical
to K-Electric (KE). On another summary of
diversification as the country's 75% exports are
targeted for 10 countries only. Without
Ministry of Energy, Petroleum Division, for revision
diversification, Pakistan cannot achieve a leap
of gas price of Mazarani Gas field held by M/s
2020-25 PPL and GHPL, the ECC approved the proposal forward on exports.
of revision of gas price applicable to Mazarani
Gas Field from US $ 1.75/MMBTU to US $
Currently, Pakistan is dealing with the exports of
conventional textiles, which generate low profits.
3.75MMBTU from 1st September 2021.
On the other hand, the value-added textiles and
The government has fixed export target of $200 technical textile market are the neglected areas
billion by the end of the fiscal year 2025. Key where Pakistan should put efforts owing to their
features of the 3rd Textile and Apparel Policy, higher profit margins. Our rival, India, invests in
recently approved by the Cabinet, include the technical textiles, while Pakistan's textile sector
persuasion of value addition in textile, focuses on commodity items. The future and only
manufacturing of globally competitive products possible survival for Pakistan's textile sector is to
according to the global trading market, and go for product diversification and technical textile
subsidizing more facilities in this sector compete manufacturing.

January/February 2022 January/February 2022