ISLAMABAD: Prime Minister Advisor on Commerce and Investment, Abdul Razak Dawood said on Wednesday that the key challenge for the government is to sustain growth in exports.
Addressing a press conference, he stated that the Cabinet has approved Textile and Apparel Policy 2020-25, aimed at consolidating the growth already achieved in the textile sector. The policy, which was already being implemented, will be in full swing now.
The salient features of policy are to maintain regionally competitive energy rates throughout the policy period, which will be reviewed each year at the time of budget exercise.
Dawood said, phenomenal growth is currently being witnessed in the textile sector, adding that textile exports would touch $ 21 billion during the current fiscal year as compared to $ 15 billion last year which implies a growth of $ 6 billion in one year.
Dawood did not give details of subsidy given to textile sector during the last three years. The share of textile sector is about 60 percent in total exports. He said industry is cross-subsidizing domestic consumers.
Textile, apparel policy to ensure sustainable growth: Razak Dawood
To a question, he said Pakistan has discussed different proposals during his recent visit to China as a member of Prime Minister’s entourage and the outcome of Pakistan’s request will be seen in the next few months. “I am asked every time what China has promised to give. We have put our proposals before the Chinese leadership. We hope China will consider our request, impact of which would be meagre in China’s overall imports but would be reasonable for Pakistan,” he added.
He maintained that Chinese industry is expected to be relocated in Pakistan due to the ongoing war of words between the United States (US) and China.
Dawood maintained that the main challenge for the government is to sustain already achieved growth pace, adding that Pakistan has to go for value addition and diversification. He was of the view that the country has to move from textile to other sectors.
Commerce Advisor said that Pakistan’s biggest weakness is that its 75 percent exports are going to only ten countries and share of textile sector is not up to expectations. Textile constitutes 15 per cent of tariff lines.
He said, in low value added item, cotton yarn, Pakistan’s position is fifth in international market, fabrics is number two and cotton cloth also number two.
“We have to move away from textile sector to other sectors,” he said adding that improvement in textile exports implies that quality of Pakistan’s products is also improved.
In value added sector, home textile products are Pakistan’s best in exports as its position is second in products being exported, towels number three, hosiery is at number six and apparel is at number 17.
“Our direction is right as textile sector, whose growth was stagnant in the last ten years, is now showing a growth,” he continued.
Pakistan’s total share in overall textile sector is 1.8 per cent, which implies there is still room for improvement in this sector for Pakistan. He said, State Bank of Pakistan (SBP) has extended $453 million under Temporary Economic Refinance Facility (TERF), of which 50 percent machinery has already arrived in Pakistan due to which industry has shown a growth.
He said, Pakistan’s quantity of value added, which is increasing gradually each year, is now performing better, adding that yarn export is going down every year. The value of one pound of raw cotton was only $ 2 ten years ago which has now increased to $ 8.
Razak Dawood acknowledged that there was no doubt that issues exist in imports. However, main reasons for the increase in imports are higher prices of energy products (oil and RLNG), food products, and import of Covid vaccine. To a question, he said that any industry engaged in exports should be granted competitive energy prices.
Copyright Business Recorder, 2022
Comments
Comments are closed.