ISLAMABAD: The government has set an export target of $200 billion by the end of fiscal 2025, business and investment adviser Abdul Razak Dawood said on Wednesday.
Key features of the third textile and apparel policy recently approved by the Cabinet include persuading textiles to add value, manufacturing globally competitive products based on the global trade market, and subsidizing more facilities in the sector to enable it to compete with its regional competitors, he said. Say.
The adviser made the remarks at a press conference to launch the “Third Textile and Apparel Policy” approved by the Federal Cabinet.
Razak Dawood hopes to increase the country’s textile exports from the current US$15 billion to US$21 billion by June 30, 2022.
“We saw a 32 percent increase in textiles this year, and we expect it to reach 26 percent by the end of next year,” he said.
He said that Pakistan’s share of the global textile market is 1.8%, which needs to be improved and the potential for further expansion is huge.
“We have rationalised tariffs and in this regard the government has reduced tariffs from zero to 50 per cent in many areas of textiles,” he said.
Likewise, textile machinery is imported into the tariff-reduced textile sector in order to introduce modern machinery into the textile industry and introduce its products to the global competitive market.
The adviser said the government is doing its best to make the current textile growth sustainable, thereby contributing to the country’s economic growth.
That’s why the government is incentivizing the textile industry with short-term and long-term policies, he said.
Likewise, the government provides comprehensive facilitation to the textile and non-textile industries through Local Tax Rebate (DLTL) payments.
Textiles have grown in both value-added and non-value-added categories, he said. Likewise, Pakistan ranks fifth globally in cotton and yawning, second in demons and fabrics, and second in cotton clothing.
He informed that in terms of added value of textiles, Pakistan’s home textiles ranked second, towels ranked second, socks ranked third, and clothing ranked seventeenth.
Talking about the past performance of the industry, he said that over the past decade, our position in the textile industry has been consistent, “We reached 12 billion US dollars,” he said.
He said the government is introducing new textile markets and products under the bilateral trade diversification policy at both geographical and product levels.
Earlier, Pakistan’s exports were limited to ten markets, and now work is underway on new markets.
Likewise, the manufacture of textile innovations and technology-introduced products is aligned with the global competitive market.
The consultant said the global market for textiles is worth $1 trillion, while the market for other commodities such as information technology (IT) and chemicals is even larger.
This is why the global market for information technology and pharmaceuticals (eg non-traditional products) is now $5 trillion, with chemicals accounting for $4 trillion.