As claimed by the officials that the textile exports would be doubled in the next five years if the government becomes successful in overcoming the high energy pricing, gas connection and tax refund issues.
The textile manufacturing sector is the single largest export-oriented sector of Pakistan which has spiked to full-capacity production after the government withdrew duties and taxes on import of the raw cotton in January.
After the coronavirus attack in China, Islamabad is getting higher export orders for textiles. “Pakistan (textile sector) is working on full capacity,” Asif Inam, Former Chairman, All Pakistan Textile Mills Association (APTMA). “If all goes well, the developments in textile industry support…the government to achieve the set export target of $24-25 billion this fiscal year (July-2019 to June 2020),” he commented.
He said there is a 26% volumetric growth in textiles export. “This (26%) was the capacity in surplus till recent months. The government has fully utilised that,” said Inam.
Reza Baqir, Governor, The State Bank of Pakistan stated that there was up to 40% volumetric growth in textile exports. Besides, the export of finished goods is on the rise, while export of raw material, including cotton and yarn are on a downward trend, which are positive developments for Pakistan’s economy.