FAISALABAD: The absence of new textile policy has been hampering the country textile export target of $25 billion which currently more than $13.5 billion. Development projects for the sector worth Rs80 billion could not be initiated due delay in the announcement of new textile policy which has expired on June 30, 2014.
Voicing concern over the delay in the approval of the new textile policy, Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha and Vice Chairman Rizwan Riaz said that the delay was not only causing uncertainty but also resulting in an inability of the sector to fully reap the benefits of the incentives offered in the budget.
They said that the government announced several schemes in the budget 2014-15 as an integral part of the new textile policy. However, the delay of the policy means the sector is not receiving its impending benefits.
They added that the government approved several schemes in the budget 2014-15 and a sum of Rs80 billion was earmarked, however, these schemes could not be implemented in the absence of the textile policy.
Textile sector contributes around 55% to the country’s total exports, besides providing direct and indirect jobs to millions.
“Workers are eagerly awaiting the textile policy because the different incentives could help exporters, announcement of the package alone would not do the trick.”
Pasha was of the view that Pakistan has failed to take full advantage of the trade concessions given by the European Union under the GSP Plus scheme because of the lack of support from the government.
Pasha added that the main reasons behind the failure of the policy was non-implementation of different initiatives due to short releases of funds as government discharged only Rs26.75 billion against the commitment of Rs188 billion.
