The Finance Ministry’s harsh conditions on new fiscal incentives have compelled the Commerce Ministry to withdraw its Textile and Apparel Policy 2020-25. The textile sector of Pakistan has not welcomed the news.
The textile exporters have expressed grave concern over the planned withdrawal of Textile Policy 2020-25 in the wake of “harsh measures” taken by the Ministry of Finance to revive the economy and the International Monetary Fund (IMF) loan program.
The government’s decision to withdraw the policy would prove to be the “deadliest U-turn” in the history of Pakistan because it would sabotage not only the efforts of the value-added textile exporters but also destroy the textile base. It can have a hugely damaging effect on the textile sector and the country’s GDP. The textile exporters were disappointed and burdened with one adverse decision after another.
As a result, they were planning to shift their business to foreign countries to work and expand their enterprises peacefully.
Mohammad Jawed Bilwani, Chairman Pakistan Apparel Forum, has termed the move unwise and reckless. He said, “The proposal comes at a time when the textile export industry is in a take-off mode, and businessmen are looking to boost exports.
Withdrawal of the policy will destroy the textile sector, dent exports, slash foreign exchange reserves, and encourage businessmen to shift industries to another country.
”
The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) called for a reversal of the policy withdrawal decision because the swift implementation of the policy was vital for new investment in the export-oriented sectors of Pakistan. Pakistan Knitwear Sweaters Exporters Association Chairman Aitazaz Ahmed Japanwala said that the policy was approved with the consent of Prime Minister Imran Khan, who agreed, in principle, to all recommendations of the textile exporters.
