ISLAMABAD - In order to resolve the problems of textile sector, the government would announce textile fund in the textile policy, reliable sources told TheNation. Sources in the textile ministry revealed on Wednesday that to address the issues of export-oriented industry of the country, government would announce textile fund, which would be a part of Rs 40 billion export investment support fund that was proposed in the federal budget 2009-10. In the export support fund, 65 to 70 per cent would be spent on the textile and clothing industry with a view to move the sector towards consolidation, sources said, adding that textile fund would provide capital to the industrialists and businessmen for overcoming the scarcity of financial resources. Textile policy would be announced in the first or second week of the August, which was presented in the cabinet on June 2 last, but Prime Minister Syed Yousuf Raza Gilani constituted a cabinet committee to evaluate the new textile policy. The new textile policy would focus to achieve an export target of $25 billion and create 2.9 million jobs over the next five years by addressing different issues and introducing specific initiatives for consolidation of the fragmented sub-sector. The sources said that the policy was in the last phases and soon the committee would give presentation to the Prime Minister to get the final approval. Textile sector, which contribute about 60 to 65 per cent of the total exports of the country, besides providing jobs to about 40 per cent of industrial workforce, is facing a number of problems because of energy crisis and high interest rates. Majority of the textile units has been closed down due to long-hour loadshedding in the country and making preparation to shift to the neighbouring country Bangladesh. It is worth mentioning here that the government missed the export target of textile products in the last financial year, as the exports of textile products declined by 9.55 per cent in the first eleven months apparently due to acute power outages, weak security environment and tight monetary policy. According to the official data, the exports of textiles group declined to $8.724 billion in July-May 2008-09 period against $9.645 billion of the same period of the fiscal year 2007-08.