The Economic Coordination Committee (ECC), is expected to approve the much anticipated five-year textile policy this week. The Commerce Ministry has decided to set the target of value-added and textiles at $20.865 billion, of which $ 16.294 billion will be the value-added sector and $4.571 billion for the textile sector by 2020-25.
Realizing the potential of value-addition in each segment of textiles and apparel supply-chain and inherited know-how of products and markets by the private sector. The Commerce Ministry has decided to set the target of value-added and textiles at $20.865 billion, of which $ 16.294 billion will be the value-added sector and $4.571 billion for the textile sector 2020-25.
Aliya Hamza Malik, parliamentary secretary for commerce, said, “The textile policy has already been approved by the prime minister, which will be presented in the ECC next week, after ECC approval, the policy would be a pubic document.”
The government will extend fiscal incentives of Rs 838 billion for five years. The impact of electricity at cents 9/kWh, all-inclusive is estimated to be Rs 123 billion, RLNG is Rs 111 billion, DLTL for textiles and apparel products (garments/technical textile at 4 percent and made-ups at 3 percent) – Rs 420 billion, LTFF to continue at 5 percent – Rs 75 billion and EFS to resume at 3 percent – Rs 109 billion.
The Textile Industrialists are waiting for this policy as it could boost their profits. With the COVID-19 pandemic, Pakistan’s textile industry is making a considerable impact as orders from other countries are also being shifted to Pakistan. The Textile Industry is the backbone of Pakistan, and with this policy, it is expected to flourish further.
