Pakistan is yet to announce its new textile policy. The new policy will be effective from July 1, focusing on value-addition. It has been delayed despite the fact that Pakistan’s textile exports showed negative growth during the first quarter of the current year.

The textile policy carries measures to increase the country’s textile exports to $26 billion by 2019. There are some infrastructure projects, like the establishment of garment-weaving cities, a ginning institute etc. under the proposed textile policy as well. A major part of the proposed textile policy was announced in the budget 2014-15 by giving cash incentives to textile and clothing exporters.

During July to August 2014-15 textile exports decreased by five per cent, as against the corresponding period of the previous fiscal. Yarn and cloth categories were the major losers in which exports decreased by 26 per cent and 13 per cent respectively.

The readymade garment sector had a slight reduction of two per cent. The decrease in textile exports also made a negative impact on cotton prices. After the grant of GSP Plus, instead of increasing, textile exports have showed a declining trend although it was expected that textile exports would increase by at least a billion dollars during 2014.