LAHORE: All Pakistan Textile Mills Association (Aptma) Chairman Aamir Fayyaz has sought an enabling environment to boost much-needed investment in the textile industry.
He urged caretaker Minister for Finance, Revenue and Economic Affairs Dr Shamshad Akhtar to take steps in building infrastructure for the garment sector at a rate of $1 billion per annum and cover indirect exports under the Long-Term Financing Facility (LTFF) scheme to encourage investment. In a letter to the minister, he stated that this initiative would result in better and increased supply of basic textiles to the domestic market.
It may be mentioned that this facility was available in the earlier Long Term Financing for the Export Oriented Projects (LTF-EOP) scheme. The chairman said data suggests that import of processing machinery has increased to 38% globally in 2017 against 2013, followed by 18% of spinning machinery, 14% of sewing machines, 15% of knitwear machines, 10% of weaving machines and 5% of MMF manufacturing machines.
Global investment in the textile industry has reached $102 billion. However, the industry in Pakistan has not been able to undertake investment initiatives, in a proper manner and witnessed a meagre investment of $2 billion during these years.
The textile industry in Pakistan has been facing constraints under balancing modernisation and replacement (BMR) and Greenfield projects, whereas textile producing countries in the region have made huge investments under various incentive schemes. Consequently, he said, production efficiencies have been shifted to our competing countries.
Published in The Express Tribune, July 12th, 2018.