Page 8 - November-December-2020

08 09
Textile Policy 2020-25

much awaited

Despite the difficulties

due to COVID-19, textile

industry is growing

The government is expected to officially declare The industry is exporting products that are
a five-year policy for the textile industry in the greater in value. This statement is supported
coming days. Reports propose that government by the fact that yarn and grey cloth are not in
have set a target of about $20 billion for export. demand right now. The local cotton prices have
The government also supporting the industry in peaked to a 10-year high on account of a sharp
achieving target by providing power, gas, water, drop of 37.6pc in the cotton arrivals for ginning to
and other essential contributions at beneficial 4.6 million bales by December 3 compared with
rates or with decreased taxes so industry could 7.4m bales last year. The exports during
compete globally. Ever since the talk of the textile July-November (2020-21) were recorded at
policy, the mill owners have high hopes that the $9.737 billion against the exports of $9.536 billion
economy will regain its place again. in July-November (2019-20), showing growth of
2.11 percent according to PBS data.
The All Pakistan Textile Mills Association, APTMA,
applauded the strategy. The policy is expected to Meanwhile, on year-on-year basis, the textile
help double the export percentage and moreover, exports increased by 9.27 percent during the
generate 5,000,000 new job openings in the month of November 2020 as compared to the
following five years. same month of last year. The exports during
November 2020 were recorded at $1286.063
When the pandemic knocked upon our doors, million against the exports of $1176.944 million.
exports from the textile industry took a hit not only The textile commodities that contributed in
in Pakistan but globally as well but the recent positive trade growth included knitwear, exports
data published by the Pakistan Bureau of of which increased from $1320.740 million last
Statistics shows that Pakistan's textile exports year to $1510.129 million during the current year,
have almost completely recovered from showing growth of 14.34 percent.
Covid-19's collateral damage.
To recover from the damages caused by covid
The textile and clothing industry recovered faster 19, the government has as of late offered an
when compared to the 0.6pc growth in the energy packet to help the industry and the
general export. The most quickly recovered areas exporters. The energy bundle gets rid of peak
are home textiles, knitwear and denim segments. electricity rates, offers reduced tariffs on
The data shows that the textile shipments have additional power consumption, and fixes
surged by 3.8 per cent to $4.8 billion between power price at $0.07 a unit and gas tariff at
July and October from $4.6bn a year ago. $0.065mmbtu for the export industries.

November/December 2020 November/December 2020