Business

Govt envisages $200b exports by FY25

Approves Textile and Apparel Policy to promote value addition

APP February 17, 2022

Pakistan needs to diversify exports by especially focusing on sectors like halal food, IT, pharmaceuticals, etc. PHOTO: REUTERS

ISLAMABAD:

The government has fixed export target of $200 billion by the end of fiscal year 2025, announced Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood.

Speaking at a press conference held for the launch of 3rd Textile and Apparel Policy, the adviser said that it was recently approved by the cabinet and its key features included encouragement for value addition in the textile industry.

Moreover, it would focus on the manufacturing of globally competitive products and offering higher subsidies to the sector so that Pakistan could compete with its regional competitors.

Dawood hoped that the country’s textile exports would jump from the current level of $15 billion to $21 billion by June 30, 2022. “We have seen 32% growth in textile exports this year,” he said. “Pakistan’s share in the global textile market is 1.8%, which needs to be increased.”

He stressed that the country had massive export growth potential, adding that the government had rationalised tariffs and would reduce duties further. “Textile machinery is being imported and the levies, applicable to it, have been slashed to enable transfer of modern technology to the sector,” he said.

The adviser emphasised that the government was trying its best to sustain the current growth in textile sector so that it could continue to contribute to the country’s economic growth.

“This is why the government is incentivising the textile sector through short and long-term policies.”

The government has facilitated the textile and non-textile sectors through the Duty Drawback of Local Taxes and Levies (DLTL) scheme. Both value added and non-value added segments of the textile industry have posted growth, he said.

Talking about past performance of the industry, the PM aide pointed out that over the last 10 years, the position of textile sector had remained the same. “We stand at $12 billion worth of exports.”

Dawood said that the government was introducing new markets and products under the policy of trade diversification.

Published in The Express Tribune, February 17^th, 2022.

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