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Pakistan clears duty claims

Pakistan is resolving problems faced by the textile sector. There is no duty on import of machinery and cotton. Duty drawback claims are being cleared. Gas and electricity will be made available to facilitate exports.

Textiles have been identified as a key priority area. Policies and incentives will be devised to encourage private sector investment in value addition and expansion in a bid to gain wider access to international markets.

Pakistan’s textile industry has witnessed dwindling investments over the last decade. Currently, around 35 per cent of the textile industry’s production capacity is impaired. Prospective investors are reluctant to make new investment decisions due to high cost of doing business. As a result, the industry has lost technological advantage over its competitors.

Readymade garments have shown an impressive growth over the years despite the overall poor performance of the textile sector. Exports of readymade garments registered 5.55 per cent year-on-year growth against the overall flat growth of the textile sector.

The industry wants long-term financing facility for indirect exports, Islamic financing and building of infrastructure for garment plants. It has also sought a long-term policy which includes consistent energy prices across the country, removal of the surcharge on the electricity tariff along with extending the duty drawback scheme for five years.