ISLAMABAD: The country’s textile industry has shared the factors behind stalled growth in exports with Commerce Ministry, top of which are duty structure of raw materials used in export-related items and electricity tariff.
The industry shared its concerns in a virtual meeting with Minister for Commerce Jam Kamal Khan, who held consultations with the Council for Apparel, Made ups, and Technical Textiles, alongside the other Council representing Textile Fibers, Yarns, and Fabrics.
The sessions focused to deliberate on addressing the critical issues impacting the textiles and apparel industry, a cornerstone of Pakistan’s economy.
The members of both councils pointed out several impediments hindering export growth, including the high energy tariffs, unsustainable taxation, liquidity crunch, complexities surrounding Statutory Regulatory Orders (SROs), limited export financing with high borrowing cost, and tariff-related challenges. Participants in these meetings urged the government to sort out these issues and take necessary measures, which they believe are crucial for maintaining the export momentum.
The meeting also touched upon the need to support small and medium enterprises (SMEs) and the establishment of new plug and play garment cities, which are seen as essential for fostering growth in the sector.
The Council members highlighted that, given the current geopolitical situation, Pakistan has a unique opportunity to capture a larger share of the international market.
They urged the government to capitalize on these circumstances by implementing policies that would bolster the country’s value-added textile exports.
The Minister acknowledged their point of view and that these issues must be addressed to streamline the sector, enhance its global competitiveness and boost exports.
Minister Jam Kamal further noted that Pakistan is one of the few countries in the world with a complete textile and apparel value chain and contributing in socio-economic development of the country.
Minister Jam Kamal assured the council members that their concerns would be voiced at the highest levels of government.
He also expressed his personal commitment to reviewing the recommendations from the 16 sectoral councils, stressing the importance of true representation from the private sector in these consultations.
“The Prime Minister is continuously deliberating on ways to enhance facilitation for exporters and increase trade volume,” said the Minister.
He appreciated the quality input provided by the private sector during these meetings, which will be instrumental in shaping the future policies.
The recommendations from these discussions will be compiled and presented to the National Export Development Board (NEDB) for final consideration by the Prime Minister.
