Pakistan is giving high priority to the value-added textile export industry. The aim is to increase exports, boost the domestic economy, accelerate industrialisation and create job opportunities. In order to promote value addition and exports, the regulatory duty on the 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.
The six major sub-sectors of the textile sector, including spinning, weaving, processing, printing, garment manufacturing, and yarn manufacturing, are expected to benefit by adopting value addition and modern techniques. 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. As compared to 2013, Pakistan is a changed country now with a conducive environment for both local and foreign investors.