In a major development, Prime Minister of Pakistan Imran Khan has accorded approval to the country’s textile policy 2020-25 under which the textile exports will be jacked up to $28 billion in five years’ time by 2025. And to achieve the target of $28 billion textile exports, cotton production in the country will be enhanced to make availability from nine million bales to 20 million bales within five years.
Razak Dawood, Adviser to PM on Commerce and Textile, in his tweet said that the prime minister has in principle approved the Textile Policy 2020-25 and under the rules of business it will be processed to the federal cabinet for approval. The draft of the Textile Policy 2020-25 sources available reveals that electricity and gas tariff will be fixed for the next five years till 2025 at US Cent 7.5 per KWh and $6.5 per MMBTU respectively. It also indicates that withdrawal of Zero Rating or SRO 1125 will be reviewed.
Under the textile policy, formation of Specialized Economic Zones (SEZs) would be ensured to accelerate exports by providing Plug and Play facilities, especially for garmenting units. Pakistan is one of the few countries having a complete textile value chain from farm to fashion and the textile sector is the biggest employment generator — especially garments.
