Pakistan is opting for import substitution as a way to add value to its textile chain. Growth of the textile sector is directly linked to the availability of cotton which is consumed by at least 16 sub sectors starting with cotton ginning up to the manufacturing of fashion garments.

Small and medium enterprises are being encouraged to switch over to latest technologies so that their overall share in Pakistan’s exports can be enhanced. The country is working on upgrading its supply chain and improving productivity. There is room for further expansion of the textile sector with improvement in the law and order and energy situations. In order to promote value addition and exports, the regulatory duty on import of yarn and other raw materials has been significantly decreased.

The regulatory duty has been revised only on 90 items whereas the same has been increased on 100 luxury items. Further, rebate will also be paid with the export proceeds electronically in order to facilitate the exporters. The process of validating licenses – for export-oriented units and manufacturing bonds – will be soon automated. The audit will also be done automatically by the system. Pakistan’s textile exports constitute a major portion of the country’s overall exports.