Gas and electricity tariffs have been rationalised for the export-focused industry in an attempt to cut cost of production and boost competitiveness. These incentives have brought down the cost of production for the textile value chain.

Pakistan has been a net importer of cotton for nearly two decades. Its cotton production hit the highest in the last ten years in 2014-15 and that year too the country imported about a million bales.

In 2018-19 season, Pakistan is expected to face a shortfall of three to four million bales. High duties and taxes of up to ten per cent, including three per cent customs duty, two per cent additional duty and five per cent sales tax, were imposed on cotton imports in July 2018, leading to a sharp decline in imports. Now the plan is to rationalise subsidies for agricultural crops in order to encourage the cultivation of cotton. The cotton ginning industry os being encouraged to reduce contamination, improve productivity and upgrade the machinery.

Owing to trade tensions between the US and China, Pakistan’s textile industry is receiving a large number of import queries from the US. Simultaneously Pakistan is working on expanding its market share in China, Japan, the European Union and the US.