The government’s textile policy 2020-25 has received appreciation from the All-Pakistan Textile Mills Association (APTMA). The approval of the new strategy makes it one of the few occasions when APTMA seems satisfied with the incentives given and cooperation promised by the government. Indeed, the 2020-25 policy sounds like a progressive and innovative one for the textile sector. Given the vitality of the textile industry for our economy, the new guidelines will support export-led growth.
The new textile policy contains subsidies and lower tax rates that will give a boost to our textile industry, which nowadays is an ailing industry. The 2020-25 policy replacing the previous one of 2014-19 is laden with recommendations and a 4-tier strategy to achieve the export target of $25.3 billion by 2025. Though the benchmarks may seem unachievable given our previous failures, APTMA is hopeful that the tariff cuts will prove instrumental in achieving the export increase identified. Moreover, the consistency in electricity and gas tariffs will also attract investment in textiles and apparel value chain.
The new textile policy is indeed a genuine show of the developmental model where the state enables a select industry to put the overall country on the path of economic stability. From reduction in tariffs to the establishment of the Brand Development Fund (BDF) to the Long-Term Financing Facility (LTFF) and Export Financing Scheme (EFS), the government has taken every possible step for the revival of the textile industry.
Now it is up to the players in this industry to play their role. The mill owners and textile product manufacturers must broaden the range of garments and made-ups. The manufacturers should make special efforts to widen the production base to include value-added products. Hopefully, the textile sector will exploit the offered incentives to help the government achieve the ultimate aim of production maximisation, job creation and the realisation of export-led growth.