Pakistan is offering incentives for the modernisation and development of textile sector. The aim is to reduce the cost of doing business, leading to a boost in trade and commercial activities. Import of textile machinery will be made easier to enhance the capacity of textile sector. About 16 new varieties of cotton have been introduced.

The high cost of energy has hit the textile industry. Gas and electricity tariffs in Pakistan are around 30 per cent higher compared with regional countries’, rendering Pakistan’s exports uncompetitive in the global market. The industry is also facing a severe liquidity crunch due to delay in payment of sales tax refunds.

The trade deficit for last financial year was recorded at an all-time high of $32.58 billion with exports of $20.45 billion, the lowest since 2009-10. Between fiscal year 2016 and 2017 Pakistan’s exports of textile products fell two per cent. Although raw cotton, cotton yarn and cotton cloth registered a decline in exports, there was an increase in shipments of knitwear, bed wear and readymade garments. Exports to the US fell one per cent. Exports to China fell 15 per cent and to the UK 0.6 per cent. On the other hand, exports to Germany, Belgium and the Netherlands rose.