US $ 25 bln target fixed in new Textile Policy of Pakistan

[Neo]

US $ 25 bln target fixed in new Textile Policy of Pakistan

'Pakistan Times' Business & Commerce Desk

KARACHI: Federal Advisor on Textile Dr. Mirza Ikhtiar Baig has said we have fixed an ambitious target of US $ 25 billion till 2014 in the new five year Textile Policy with two times value addition target.

He was addressing as chief guest at the inaugural of the seventh Textile Asia 2010, the International textile and garment machinery show held at Expo Center here.

The Federal Advisor said the new Textile Policy 2009-2014 announced by the government of Pakistan allows various incentives including concessional financing (LTF) to encourage capital investment in value added textile sector.

Dr. Mirza Ikhtiar Baig said the present government has identified textile as a key priority area and is making all possible efforts to set the right policies and incentives that encourage private sector investment in value addition and expansion in a bid to gain wider access to the international markets. He said Pakistan has also embarked on a wide-ranging initiative to increase its attractiveness to foreign investors in the textile sector.

He said the government of Pakistan has also withdrawn Customs duty on import of plant and machinery by the manufacturing industries and is working hard to get duty free market access for our textile products for EU and US markets. Our Textile Industry has invested US $ 6 billion under BMR during 1999 to 2003.

He said he would like to invite the participants to joint ventures to take advantage of investment- friendly environment in Pakistan and exploit the untapped potential textile sector offers as we gear up for increasing our share of value added textile products in the world market. He assured that the government of Pakistan will leave no stone unturned to provide an environment that guarantees security of investment made in Pakistan.

The Advisor noted that more than 212 foreign delegates are attending Textile Asia this year. He welcomed the foreign delegates and encouraged them to capitalise from immense unexplored business opportunities Pakistan offers. 349 international brands from 37 countries are being demonstrated at Textile Asia, he said.
Dr. Mirza Ikhtiar Baig was of the opinion that Pakistan should learn a lesson from Bangladesh, which, by importing yarn and fabrics from Pakistan and other countries, has increased the export volume of Textile made- ups.

The new five year Textile Policy’s (2009-2014) focus is to promote value added sector in Textiles, he said.
He said Pakistan is transforming itself from being a stagnant economy to fast-paced emergent economy as a result of the structural reforms introduced by the present government in the areas of investment, business and trade in addition to covering social, political, judicial and security sectors.

The Advisor said the present government’s policies of regularisation, privatisation and liberalisation have given a boost to the industrial and commercial activities in all sectors alike. The results of such initiatives are visible in the form of these successful international exhibitions organised by Ecommerce Gateway, he said. He noted that the geographical location of Pakistan warrants unique proposition to make investments here.

As Pakistan lies at crossroads to South Asia, Gulf and Central Asia, it gives direct market access to more than half a population of the world that lives here, he maintained. Dr. Mirza Ikhtiar Baig clarified that no Pakistani Industries was shifting to Bangladesh. The Bangladeshi currency is now stronger as compared to the currencies of many countries in the region and their textile and apparel exporters are losing competitiveness due to the strong Taka against the dollar, he added.

Furthermore they are also facing shortage of natural gas for the industries. Recently they have cut gas supply to their fertiliser industries, he said. He said the textile sector is the backbone of our economy having 55 per cent of our total exports and 38 per cent job creation in the manufacturing sector and holds great importance as it significantly contributes to our exports and foreign exchange earnings.

He said keeping the said opportunities in view, modernisation and up gradation of Textile sector is important to improve the quality of value added products Pakistan exports and to make the country better equipped for competing in the world. In addition, it would also help create jobs, alleviate poverty and assist the present government to fight terrorism and extremism, he said.

http://www.pakistantimes.net/pt/detail.php?newsId=10216