The Ministry of Textile has proposed duty free import of raw materials which are used in the manufacturing of special textile products in the new Textile policy. The Policy is likely to be presented in the upcoming cabinet meeting for approval in which the export target has been increased to $25 billion from $11 billion in the next five years.

Sources said that the term "Technical textile raw materials" covers items like fabrics used in the highly processed form. For example such materials are used in the manufacture of aircraft seats. In developed countries these products are made by SME sector. The SME sector has the ability and flexibility to respond quickly to technology changes. Unfortunately in Pakistani SMEs have no resources to initiate building of such products by themselves. Some of the examples are Agrotech, Buildtech, Indutech, Biomeditech and Homotech.

However, when contacted customs officials told Business Recorder on Thursday that there is no such term like technical textile raw materials defined anywhere in the Pakistan Customs Tariff (PCT) or Harmonised Coding System under the Customs Laws. The Customs Act 1969 has also not defined term like "Technical textile raw materials".

Sharing salient features of the new textile policy, sources said that the government has planned to provide a foundation for sustainable growth for which various initiatives are being planned through a separate and first-ever Textiles Policy, to be announced shortly. The major thrust of the Textile Policy will be to enhance domestic capabilities and capacities for efficient use of resources through skill development, technology upgradation and provision of infrastructural facilities. Measures are also envisaged for diversification of fiber usage and mix.

They said that the new Policy takes a holistic approach and will contain short-term and long-term measures to support the textiles and clothing manufacturers overcome the current problems created by the global downturn and equip them with necessary ingredients to meet the growing competitiveness.

In the new policy it is proposed to hire foreign consultants to initiate technical textile projects and also for the training of the manpower. Technical textile laboratory would also be established under the research center. More than 80 percent of our industry is working in unorganised sector and with increase in global competition it has become the requirement of the day to operate in economies of scale and develop strategic partnerships for long term benefits.

They said that our textile industry has a very strong base of cotton, ginning, spinning, weaving and processing but we are producing commodities for the low and mid end markets as we didn't concentrate on the value added products. Our forward sector doesn't have the capacity to utilise the backward sector production, they added.

The new policy aims at to balance the textile value chain by encouraging investment in the forward vertical chain. To help create enabling environment and to provide the means by which the textile industry can serve as the prime mover of industrialisation for generating employment, increasing export earnings and encouraging contribution to national income by enhancing value addition.

Focus of the Policy is on to establish linkages among the various textile sub-sectors, both upstream and downstream, by ensuring their healthy and harmonious development. To undertake and implement various integrated and related plans and programmes for the development of spinning, weaving knitting, hosiery, dyeing, finishing and the stitching industry on priority basis.

Skill development in all areas of textile chain especially in the stitching sector must be accorded top consideration. It must develop the cottage industry to ensure availability of raw materials for the textile industry, ie blending of wool, hybrid seeds, sericulture and accessories industry for the ready made garments industry. Productivity enhancement of all the sectors of the textile industry and investor friendly policies should be the cornerstone of the Policy.

In the new policy one of the prime objectives of the government should be establishment of research centers/councils for every sector of the textile value chain. The councils will carry out product development, design development, cost effective operations, best operation practices and testing of the products. These research centers must be accredited with international research organisations so that their results can be accepted in international market.

Source: Business Recorder