Pakistan textile and clothing exports, which fetched $13.5 billion or almost 60 per cent of total export earnings last fiscal, continue to struggle. The industry’s total shipments remain flat at $6.64 bn during the first half of 2018-19 on an annual basis. This raises questions about the rationale for the subsidy worth billions of rupees given to the country’s largest manufacturing industry that contributes 8.5 per cent to GDP and employs 46pc of non-farm labor.

Ali Ahsan, Chairman, All Pakistan Textile Mills Association (APTMA) believes textile and clothing exports can easily double to $26 bn in the next five years if the government continues to support the industry through a long-term policy. He advocates removal of upfront incidentals on the import of manmade fibers, which is short for industry consumption. This will enable the industry to diversify into products that are in high demand in foreign markets.

Further, the government must liquidate all outstanding refunds of the industry on account of sales tax, duty drawbacks and previous textile policies, withdraw gas infrastructure development cess (GIDC) arrears of pre-GIDC Act 2015, allow the payment of the post-GIDC Act arrears in installments, and expedite new gas and electricity connections and tagging for the zero-rating of the industries by departments concerned.