Pakistan is taking steps to raise its cotton to international standards. The country also wants to increase its textile exports. Numerous initiatives have been taken up to ensure the development, production and preservation of better quality cotton in the country. Research institutes have developed some varieties with over 30 mm staple length. Provincial governments have been instructed to ensure standardization and grading of cotton according to international standards.

However, the problem is that long varieties carry a premium, which buyers may not be willing to pay. The government has approved a textiles package in the Budget 2014-15. This comprises several important initiatives like drawback for local taxes. Levies would be given to exporters of textile products on values of their enhanced exports on an incremental basis if increased beyond 10 per cent over the previous year‘s exports. Also, there is a provision for duty free import of textile machinery for two years.

Textile units in the value added sector would be provided long term financing facility for upgradation of technology from the State Bank of Pakistan at 9 per cent rate for a duration of three to ten years.  Easy finance mark up rate for the export refinance scheme of the State Bank of Pakistan has been reduced from 9.4 per cent to 7.5 per cent from July 2014.