Pakistan govt working out plan to uplift textile exports and cotton sector

The Pakistan Textile exports for the period July-March 2013-14 has show a 8 percent raise, while exports in all value added categories has increased considerably i.e. bed wear by 21 percent, hosiery by 10 percent and readymade garments by 9 percent. Increase in textile exports followed due to the disbursement of Rs.3.5 billion by the government for the textile sector in shape of drawbacks, export finance support and mark up support, according to one year performance report of the government.

During the previous year 2012-13 only Rs. 2 billion was provided by the Government.

The report said that productivity benchmarking of ginning, knit processing and knit stitching sector was completed in August 2013. It added that draft Textiles Law for rationalization of cess collection and implementation of the developmental programmes for textiles sector, has been completed while skill development of 600 people specially women in collaboration will International Labour Organization (ILO) has been completed.

The Ministry had given comprehensive proposals for opening up trade with India while protecting the domestic manufacturing to ensure level playing field and as a first step, 5% custom duty on cotton yarn has been restored.

It added that the negotiations are still on with the ILO for introduction of Better Work Programme in Pakistan next year. The Ministry also facilitated Made in Pakistan Readymade Garment Exhibition in Mumbai, India in April 2014. The Ministry organized 3 awareness seminars on GSP plus while development of fiber diversification plan for wool, silk and polyester including handloom, embroidery specially for Sawat, Charsadda, Kohat etc.

There was also increased investment by private sector in first six months of CFY i.e. $ 319 million compared to $ 229 million during same period of previous year. It added that submission of vocational training programme for 1,20,000 unskilled workers majority women in Planning Commission. The Ministry successfully lobbied with the Ministries of Climate Change and National Food Security for approval of 15 cotton varieties and holding of NBC after three years.

The one year performance report of the textile ministry said that the first ginning institute in Multan had commenced. It added that the restructuring of Pakistan Central Cotton Committee had been submitted to the concerned quarters while research programme with Chinese companies to facilitate increase in cotton yield by 30%, is being initiated, and an area of 60 acres is being provided for trials. The one year performance report of the ministry further said that setting cotton target of 15.1 million bales for the year 2014-15.

The Ministry will be formulating first ever cotton policy and textile policy 2014-19 in consultation with stakeholders. The final consultative conference on cotton policy is to be held in June 2014. Meanwhile, it has initiated Cess collection of Rs 50 per bale on imported cotton which was earlier only on domestically produced cotton which was an anti-export biased. It has also put forward a relay crop project to introduce cotton in standing wheat plantation.

While, the textile policy 2014-19 will also be fomulated in consultation with stakeholders and the final consultative conference will be held in Karachi, Lahore and Faisalabad. The textile policy is worked out to double the exports of textiles sector from present $13 billion to $26 billion.