Pakistan proposes Rs200 bn for textile sector revival

October 20, 2016 - Pakistan

A bailout package of Rs 200 billion has been proposed by the Pakistan government to revive and modernise the textile sector of the country, said minister of commerce Khurram Dastgir. The special package is being considered on the direction of Prime Minister Nawaz Sharif for introducing technological and infrastructural improvements to the textile sector.

Dastgir made this announcement at the Senate standing Committee on textile industry meeting recently held in Islamabad.

The government is also keen on providing special incentives on taxes to enhance the value addition of the textile sector. The technological revival of the industry is being considered to help it compete with regional competitors that emerged in the last ten years, according to Pakistani media.

A six-member committee has also been formed to review challenges faced by the country’s textile sector. It will soon come up with recommendations for the revival, said Dastgir.

The committee also discussed the performance of Pakistan Central Cotton Committee (PCCC), which is not functional and unable to play its role in the industrial development of the sector. Addressing the committee’s concern, Dastgir stated that the government is seeking private-public partnership to enhance PCCC’s capacity.

Concerns over the decrease in cotton production due to farmers in South Punjab switching to crops like maize and sugarcane were also voiced by the committee. It said that good quality fertilisers and seeds need to be provided to farmers to avoid this. (KD)