TEXTILE POLICY 2014-19 WAS ANNOUNCED BY THE FEDERAL MINISTER FOR TEXTILE INDUSTRY ABBAS KHAN AFRIDI.

 Textile policy 2014-19 was announced by the Federal minister for Textile Industry Abbas Khan Afridi after approval from the ECC. Textile policy for the next five years is worth Rs 64.15 billion. The finance division will provide Rs 40.6 billion, whereas the rest Rs 23.5 billion will be financed through Planning Commission and Textile Development Fund.

               

Federal Minister for Textile Industry Mr. Abbas Khan Afridi along with Federal Secretary Mr. Amir M.Khan Marwat

While addressing the press conference the minister said that the Textiles Policy 2014-19 represents a new beginning for the textiles sector. Through this Policy the government has not only set out a development road map but has provided necessary support without which accelerated progress of textiles in Pakistan is not possible. It is now the responsibility of the private entrepreneur and the business leaders, exporters, labor and all others affiliated with this industry to transform the policy vision into reality. The annual exports target of $ 26 billion by 2019 is ambitious but not beyond our potential. It is essential that we depend on our own resources and neutralize the debt burden. Textiles offer a unique and realistic opportunity to strengthen our economy for its sustainable growth.

                The federal minister added that textile sector is one of the most important industrial sectors of Pakistan. It is not only the biggest exports-earner but also the provider of employment to the major part of total industrial workforce of the country. Due to its importance, the Government has always been taking measures aimed at textiles sector promotion and development through various support schemes, policy interventions and capacity building.

                Textiles value chain is quite long. Starting from cotton to a finished garment of the latest fashion, it involves numerous diverse sub-sectors which have distinct structures, requirements and issues. Through the Textiles Policy 2014-19, effort has been made to address the issues of all the sub-sectors of value-chain by laying down a perspective plan for their sustainable growth for the next five years.

                Afridi reiterated that the formulation of the present Textiles Policy started with a comprehensive study of the global trade environment. We analyzed in detail our strengths and weaknesses in the post-quota scenario. The incentives being offered by our competitors to their textile sector were also microscopically studied. This was followed by an extensive exercise of consulting the stakeholders; both from the public and private sectors. Inputs were obtained from the stakeholders of various subsectors of the textiles sector at large. Other economic ministries namely Commerce, Industries & Production, National Food Security & Research, Finance, Revenue, Planning, Development & Reform etc were also consulted.

                Textile policy 2014-2019 envisages Pakistan as a leading value-added textile exporting country. Textile industry is the most important manufacturing sector of Pakistan and has the complete production chain with inherent potential for value addition at all stages of processing. Textile sector provides employment to about 40 % of industrial labour force, consumes more than 40% banking credit and accounts for more than 8% of the GDP.

                Textile policy adopts a five pronged strategy to make the textile sector competitive and sustainable. Budgetary support, drawback of local taxes and levies, easy finance, sales tax regime, duty free import of machinery, policy interventions, tariff rationalization, fiber diversification, product diversification, SME development, enactment of domestic labour laws, revival of sick units, marketing strategies, technology up gradation, establishment of world textile centre & model cotton trading houses, revitalization  of  projects like Pakistan Textile City, garment cities and capacity building of the ministry and related organizations are the salient features of the textile policy.

Federal Minister for Textile Industry Mr. Abbas Khan Afridi along with Federal Secretary Mr. Amir M.Khan Marwat               

   Secretary textile industry Amir Marwat apprised that the textile policy 2014-2019 aims to double value addition from $ 1 billion per million bales to $2 billion per million bales in next five years, double the textile exports from $13 billion to $ 26 billion, facilitate investment of additional $5 billion in machinery and technology, improve fiber mix in favour of non-cotton i.e  from 14%  to 30%, improve product mix especially in garment sector from 28%  to 45%,  promote use of ICT , development and strengthening of clusters.

                Textile policy is based on actionable plans to make textile sector competitive and sustainable. The ministry proposed that schemes approved in finance bill 2014-15 may continue during the next five years. These scheme include drawback of local taxes and levies, reduction in markup rate from 9.4%  to 7.5% under export refinance scheme, long term financing facility for technology up gradation at the rate of 9%, duty free import of machinery and vocational training.

                A joint committee of ministries of Textile Industry, Petroleum and Natural gas, Water and Power will take measures to give priority to textile sector for availability of energy to fully utilize GSP plus status.

 

                For the next five years, Rs 40.6 billion have been reserved for incremental DLTL, Technology up gradation Fund, Brand Development Fund and drawback on deemed import basis. Planning commission would cater for the rest Rs 23.40 billion  through PC-1 to be allocated for skill development of hand loom workers, textile exhibition , hand knotted carpets , hand knotted carpet training , SME, trainings, product development & innovation fund , skill development program, textile universities, world textile centre, weaving city, mega and minor cluster development and better cotton initiative.

                By implementing the initiatives of the Policy, we hope to realize the fullest potential of the sector for which we are making concerted efforts. We are also bringing about a legislative framework that would set the standards which will result in improved productivity and efficiency through elimination of waste, enforcement compliance and better use of ICT.

                The ministry hopes that this Policy is going to be a success story and will strengthen the textiles sectors for the overall improvement of the national economy. It is a golden chance for all the stakeholders to seize the opportunities enshrined in the Policy and endeavor to achieve goals and objectives.