Aura Herbal Textiles Limited Get Combined Privileges at Unusual Price Make your product a global brand - Make your brands desirable
   Home >  Articles  >  Industry


Pakistan's new textile policy
Source  : AEPC

 Free Download  |     Email Article |  Discuss Article |  Print Article |  Rate Article

'Pakistan's New Textile Policy Targets 40% Increase in Exports'


The proposed new Textile Policy (NTP) of Pakistan will help increase the output of textile products, improve global competitiveness and generate employment in the industry. The new policy targets a 40 percent increase in exports and meet the growing domestic demand.  It will help create 3.5 million new jobs.


The first important step is to increase domestic cotton production which puts Pakistan in an advantageous position because of its reasonable price. Other measures include - improvement in value addition, increase in the number and variety of value-added products, enhancement of productivity of manpower, stepping up efficiency of its existing plants and equipment, and extensive use of the imported machinery.


Five new model garment factories will be established. A textile park will be set up to serve as a special economic zone for tax free production and export. A weaving city will be established.


Other highlights include- formation of Pakistan Textile Research and Compliance Organization, audit for processing industry for an efficient and economic use of costly chemicals, setting of a state-of-art textile laboratory at National Textile University Faisalabad, horizontal and vertical integration to balance textile value chain, a specialized garment training institute for women, one-window facility for providing required infrastructure and standardization of machinery and equipment.


The financing facilities include subsidized credit and refinance facilities provided by SPB through the commercial banks, Export Finance Facility (EFF) for textiles. The SBP has allowed swapping of costly long term bank credit, obtained previously by the industry, with cheaper Long Term Finance for Export Oriented Projects (LTF-EOP) for machinery and equipment. The industry is now allowed to undertake External Commercial Borrowing (ECB) for plants and machinery.


Pakistan plans to raise its overall exports to $ 40-45 billion by 2013, by expanding industrial, agricultural and services sectors, including textiles. "The government is focusing on skill development, and on reducing the cost of doing business to achieve this export target, the Prime Minister said. The Prime Minister said that it is important to build brands, working on the existing strengths and create competitive advantage internationally."


The proposed policy envisages building a new culture, which would expedite the process of improvement in all the segments of the textile sector. The skills gap in all the entities of the textile sector as well as the concerned government organizations have to be filled by professionals to cope with the challenges and the changing environments of international marketing.


The proposed Textile Industry Development Policy 2007 is expected to offer four tax incentives to attract foreign direct investment (FDI) in upcoming textile and garment cities in Karachi, Lahore and Faisalabad. Ministry has proposed that all import of textile machinery and raw material should be duty-free to facilitate import of the latest textile machinery, which would prove to be a big incentive for the textile sector to enhance its production capacity. At present, tax authorities are charging a minimum of five percent custom duty on the import of machinery. The proposed incentives include a general sales tax exemption on utilities to those investing in upcoming textile and garment cities. The government has already allowed general sales tax at zero rating on electricity and gas consumed in the production process of the textile sector.


Pakistan textile industry contributes 66 percent to the countrys export, 40 percent to employment and 8.5 percent of GDP. The exports of textile products have increased by 5.27 percent at $10.757 billion in 2006-07. The government has fixed a growth target of 12 percent for textile exports for the current fiscal year 2007-08.


Source: http://aepc.fibre2fashion.com/vol1issue9/

[ 1  ]    


 Published On :  Friday, August 08, 2008

 Free Download  |     Email Article |  Discuss Article  |  Print Article |  Rate Article
    Bookmark This Article To Your Favorite Bookmarking Sites   Bookmark and Share

Product Focus
NanoSphere by Schoeller Technologies AG VIBRA-PLUS by Osthoff-Senge Gmbh

Article Category
  Textile
  Technology
  Industry
  Apparel
  General
  Fashion
  Retail
  Technical Textiles
  Leather, Footwear & Jewellery
  Software
  Dyes & Chemicals
  Handloom and Handicraft
  Machinery

Submit Your Article
Contributor's Profile
Contributor's Login
Subscribe for Newsletter
RSS Feeds
Disclaimer
Find Buyer/Seller of:
Find Used Machinery Buyer/Seller:

Latest Articles
Glorious String to your Hand-Bracelets  
Small Brands, Big Canvas  
Performance Apparels sees hype in the Global Market  
Buying Apparel Fabric-8 Critical Points to Remember  
'Bandhani'- The Tie and Dye Process  
Recession and Luxury - The Global Market
Lean manufacturing To restrict cheap imports
Submit Articles about your products and services - Get them published as Featured Articles
Most Downloaded Articles
Quality Requirements for Hosiery ...
Moisture Management and ...
Lean Rationale for ...
Indian Textile and Clothing Sector Poised for a ...
Evaluation of Industrial Dyeing Wastewater Treatment with ...

Disclaimer | About Us | Enquiry | Sitemap | Our Services | Feedback / Comments | Internet Rank
Copyright © 2009.
All rights reserved by
Sanblue Enterprises Pvt. Ltd.
For best view:
Use Internet Explorer 5.0+,
Screen resolution 1024 x 768
ICICI Payment Gateway
Secure Merchant
ISO 9001 certified