Sohail Pasha, Chairman Pakistan Textile Exporters Association (PTEA), has stressed the continuation of the Duty Drawback of Taxes incentive for the growth momentum in exports and uplift the economy.
The textile sector can harness US$ 25 billion for the economy, which can prove to be a significant boon for Pakistan’s debilitating economic situation.
He added that the textile sector, which is among the significant contributors, has played a significant part in this regard. The textile industry has now picked up a growing pace following the removal of Covid-19 restrictions witnessing a sharp surge of 26% year-on-year to $ 9.38 billion in the first half of FY 2022. Higher textile exports came back from quantum growth in high value-added products. Pakistan still needs to increase private investment and enhance export volume to sustain robust economic growth. He described that to gear up textile exports, Duty Drawback of Taxes (DDT) incentive was allowed to textile exporters based on their exports, resulting in significant growth in textile exports. He underlined the need for continuity of drawback of local taxes scheme to sustain the growth momentum. The sector provides large-scale jobs and has a considerable share in the country’s exports coupled with a magnanimous room for value-added textile products
The textile industry, which comprises 46% of the total manufacturing sector, employs around 25 million Pakistanis, contributes 8.5% to the GDP, and can lead Pakistan towards economic prosperity. A sustainable and inclusive economic growth is the key to a strong and vibrant Pakistan, opening the door for development and prosperity.
Highlighting the Government’s major initiatives to boost exports, PTEA Chairman said that the initiative to provide energy resources to export-oriented industries at regionally competitive prices (Electricity @ 9 cent/kWh and Gas @ $6.5 per MMBtu) brought positive outcomes registering upward growth in exports. However, he stressed ensuring continuous energy supply at regionally competitive prices to the export sector.
