Growth Oriented Textile Policy

(Amna Malik, Islamabad)

The industrial revolution started in Great Britain in the mid-1700s. Textile production was the first great industry created. Textile manufacturing is a major industry. It is based on the conversion of three types of fiber into yarn, then fabric, then textiles. These are then fabricated into clothes or other artifacts. The textile industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The textile sector of Pakistan is considered to play a central role in the economy of the country or contributing like a backbone of Pakistan’s economy. Increase in the cotton production and expansion of textile industry has been impressive in Pakistan since 1947. Number of mills increased from 3 to 600 and spindles from about 177,000 to 805 million similarly looms and finishing units increased. The textile industry in Pakistan can be broadly categorized in two divisions, a large scale organized sector and a small-scale sector. Pakistan is the 8th largest exporter of textile products in Asia. This sector contributes 9.5%12 to the GDP and provides employment to about 15 million. Pakistan’s share is less than one percent in the volume of total world textile trade of about US$18 trillion per annum. For Pakistan which was one of the leading producers of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products.

In Pakistan the Role of All Textile Mills Association (APTMA) is to encourage unanimity amongst Textile Mill owners and to promote and protect the trade commerce and manufactures of Pakistan or to collect and circulate statistics & information classify relating to the trade, commerce and manufactures of its members and to take all steps which may be necessary for promoting, supporting or opposing legislative and other measures affecting the trade, commerce or manufactures of its members and to make representation to local, Provincial and Central authorities. PML-N government is taking strong initiatives for boost up of our economy and APTMA appreciates PML-N government initiatives through the ministry of textile industry for providing growth oriented textile policy 2014-2019. The policy initiatives are to drawback of local taxes and levies against export of garments 4%; made ups 2 % and processed fabric 1 %, markup rate for export refinance scheme of state bank of Pakistan is being reduced. Long-term financing facility (LTFF) for upgrading of technology, technology up gradation fund scheme (TUFS) to encourage investment, priority to textile industry for availability of gas and electricity to fully utilize the GSP+ status. Duty free import of machinery for another two years.

If textile policy is fully implemented, Pakistan will be able to take great help to achieve double textile exports from $13 billion to $26 billion or double value-addition from $1 billion to $2 billion per million bales, or to facilitate additional investment of $5 billion in machinery and technology, and to improve fiber mix and product mix in the garment sector. In policy, the textile sector will be able to made domestically and internationally compliant especially with respect to labor and environment or facilitate the revival of closed capacity. When this policy will be implemented the creation of 3 million jobs through internships in the large textile units and vocational trainings of workers for higher productivity would b introduces.

No doubt, PM Nawaz Sharif is empowering Textile industry with the assistance of Abbas Khan Afridi, Minister for textile industry and with finance Minister Ishaq Dar and after implementation of this policy with the help of APTMA Pakistan’s economy will grow up more and able to take a strong position on dealing with international level more confidently.

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Amna Malik
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