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Business & Finance

Govt to announce Textile Policy 202-25 in coming days

  • The focus of the policy is to enhance the productivity and competitiveness of the textile sectors.
Published December 1, 2020

The government is all set to announce its much-awaited Textile Policy 2020-25 this week, reported local media.

As per details, in the policy, it has been proposed to provide electricity at 7.5 cents instead of 9 cent for the textile sector, followed by RLNG at $6.5 per mmbtu and domestic produced gas at Rs786 per mmbtu. The policy aims to reduce the input cost of the textile and clothing sector and make it competitive with the regional players.

The proposed package carries special duty-drawback rates, rationalisation of duty on textile value chain, and subsidy on long-term loans and development subsidies.

The All Pakistan Textile Processing Mills Association, (APTPMA) office-bearers said that prior to its final approval by the cabinet it must be ensured that incentives/relief being announced in the policy should cover all indirect and direct exporters and we assures the government that implementation of the textile policy in letter and spirit will ensure the doubling of textile exports from $ 13 billion to $ 26 billion in next five years, and will create five million new jobs.

Dayso ago, Abdul 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.

It is pertinent to mention that the last textile policy was announced in 2014 by the-then textile minister Abbas Khan Afridi.

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