Tuesday February 20, 2024

$5bln textile industry investment in pipeline: adviser

October 08, 2021

ISLAMABAD: Abdul Razak Dawood, Adviser to Prime Minister on Commerce, on Thursday said an investment of around $5 billion was in the pipeline in one hundred new textile units, which was expected to generate 500,000 jobs.

“Our Make-in-Pakistan policy is beginning to show results. We have been informed that an investment of approximately USD 5 Billion is in the pipeline under which 100 new textile units are expected to be established. Apart from enhancing export capacity,” said adviser in a tweet.

He further said these are likely to create about 500,000 Jobs.

“This government has reversed the de-industrialisation and Insha’Allah, we are now on a path of industrial growth in Pakistan”, he said in the tweet.

The commerce adviser posted these tweets after talking to the Chairman of All Pakistan Textile Mills Associations (APTMA).

Talking to The News, the APTMA’s Secretary-General and Executive Director Shahid Sattar said the textile sector had opened a $3 billion letters of credit for importing machinery after getting a facility under Temporary Economic Refinance Facility (TERF) given by the State Bank of Pakistan.

Under these TERF provisions, there was a financing facility of 60 percent, and the textile units were asked to finance a further 40 percent, he added.

Sattar further said it was expected that an investment of approximately $5 billion would be poured into the value-added sector of the textile industry.

He said that there was another investment of $500 million into the textile sector, adding, if one textile unit generated 5,000 jobs then a hundred units would certainly create 500,000 new jobs.

Sattar said the value-added in textile sectors starting from spinning to stitching would enhance productivity.

The capacity utilisation and price increase in international markets would help increase textile exports.

“We are hoping the textile exports will be increased from $15.5 billion in last fiscal to $21 billion during the current fiscal year” he added.

APTMA official also said there were shortages of raw cotton, polyester, and human resource so it would be difficult to increase exportable surplus on an immediate basis.

He said, however, the textile industry was exhausting full capacity utilisation and secondly, the surge in prices would help achieve the target of textile exports by touching $21 billion till June 30, 2022.