Textile firms rattled by likely policy withdrawal

LAHORE: Textile majors on Tuesday lambasted the government over reports that the commerce ministry was withdrawing

the Textile and Apparel Policy 2020-25 after fresh inputs by the finance minister, despite winning approval from the Economic Coordination Committee (ECC).

Finance ministry’s ‘harsh conditions’ on new fiscal incentives have reportedly compelled the commerce ministry to withdraw the policy that couldn’t make to the final round despite the ECC’s approval. The fresh development would throw all efforts into vain, the industry feared.

"ECC of the cabinet last month had finally approved the Textile and Apparel Policy 2020-25, with the directives to relevant stakeholders to take the Federal Board of Revenue [FBR] and power division’s input, but now the policy is being withdrawn on the interference of the finance ministry, leading to further delay in implementation of this vital policy,” reads a letter by Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) to the ministry of commerce.

Jawed Bilwani, chief coordinator at Value Added Textile Forum and also chairman of Pakistan Apparel Forum, said the withdrawal of the ECC's approved textile policy and discontinuing the relevant policy measures to uplift textile exports would be tantamount to pushing the industry into destruction.

“The finance ministry's harsh conditions to disrupt fiscal incentives to the textile industry under approved Textile Policy 2020-25 shall nullify the government's efforts to enhance exports and will also force the textile industrialists, in view of contradictory moves, to shift their industries elsewhere in the region in countries,” Bilwani said.