The government is likely to announce the first, incentive-laden, Textile Policy which would underline the importance of value-addition to give the industry an edge to compete with its regional competitors in the international market.
Sources told Business Recorder on Monday that the Textile Policy would be announced along with the trade policy, prior to budget, and the Ministry of Textile has been consulting all stakeholders in this regard.
They said that textile machinery worth $5.5 billion had been imported, mainly because of tax exemption given by the government. The textile policy was expected last year, but was delayed because the government wanted it to be 'more comprehensive'.
Prime Minister Shaukat Aziz has directed both the textile and the industry ministers to make the policy more dynamic, for rapid growth of the industry.
The suggestions forwarded by All Pakistan Textile Mills Association (Aptma), Cotton Growers Association and Pakistan Readymade Garments Association, and Ministries of Agriculture, Industries and Commerce have been given serious consideration.
A number of steps are said to have been incorporated in the policy to strengthen the textile industry, to meet WTO standards, and to successfully compete with the neighbouring countries in the international market.
Sources said that to encourage producing clean cotton, as per world standards, the government would also announce a premium in the policy for the cotton-ginning industry.
The policy would recommend that every ginning factory must have a permanent cotton inspector to maintain cotton quality. The cotton inspector will be responsible for approving the quality of seed-cotton before it is purchased from the growers.
Necessary training would also be provided to cotton inspectors at Pakistan Cotton Standards Institutes at Karachi and Faisalabad, and five more training centres would be established in the country.
Sources said that the Textile Ministry has been striving to maximise textile exports. The government is expected to announce a number of incentives in the budget for promotion of textile industry, they added.