FPCCI calls for policy makeover to stimulate textile exports

ISLAMABAD: The government must formulate long-term, durable, and consistent policies to bring up textile manufacturing and exports that have been stuck in a downward spiral for a longtime, an industry official said on Thursday.

“Since 1950s, the textile sector has been the main driving force of our economy, with more than 60 percent share in our total exports and offers employment to almost 40 percent of our work force,” said Sheikh Sultan Rehman, Vice President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) in a webinar.

The online interactive session titled “Textile Industry of Pakistan: Challenges & Way Forward” was organised by FPCCI Karachi via video link.

“However, there has been a decline in our manufacturing as well as exports of textile products in recent years.”

Rehman said the government must take immediate measures for the timely refunds of sales and income tax, issuance of income tax exemptions on utility bills, and resolve issues faced by this export-oriented sector.

During the discussion, Naqi Bari, CEO Bari Textile Mills, said, “The decline in the production of cotton has increased the cost of manufacturing textile products which have ultimately affected our exports Pakistan”.

“We must increase our cotton production along with value addition to increase our exports,” Bari added.

Danish Javed, Convener FPCCI Standing Committee on Bedwear, said, “Bangladesh learned from our success in the textile sector and implemented effective policies, which helped their textile sector and economy to grow a lot”.

Javed said the government should exempt import of spare parts for textile machinery from duties and restore zero-rating to get the exporters out of the ongoing liquidity crunch.

Chaudhry Muhammad Nawaz, Chairman All Pakistan Cotton Power Looms Association, said, “This sub-sector mainly comprises SMEs that are severely affected in present times and need special support from government to revive again”.

Nawaz highlighted that commercial banks were reluctant to extend financing to SMEs particularly in Faisalabad.

A representative from All Pakistan Textile Mills Association (APTMA) said, “Issues of regionally uncompetitive industrial tariffs as well as high turnover taxes are one of the few major reasons of continuous decline in the manufacturing of textile in the economy”.

“We should learn from the examples of Bangladesh and Vietnam that timely addressed these issues and now their textile sectors are playing an important role in their economic development,” the APTMA official said.

Qaisra Sheikh, Coordinator Women Entrepreneurs FPCCI, said, “The FPCCI is the most relevant platform for the business communities to address these issues”.

Shagufta Rehman, Senior Vice President Women CCI Lahore stated the government must extend support to women entrepreneurs particularly belonging to textile sector. Taking the opportunity, she also identified the issue of commercial banks’ reluctance to release the loans to women entrepreneurs.