Textile industry in Pakistan wants duties on polyester and cotton yarn to be abolished. The rationale is: this will decrease input costs in the domestic sector. The powerloom industry has faced losses due to costly polyester yarn. Pakistan has taken positive initiatives for the revival of the export sector. Imports have started decreasing, whereas transactions witnessed a 10 per cent increase and exports two per cent increase.

Although duty on cotton imports has been abolished, duty on cotton yarn remains. Gas and electricity tariffs have been rationalised for the export-focused industry in an attempt to cut the cost of production and boost competitiveness. These incentives have brought down the cost of production for the textile value chain. Cotton production in Pakistan has fallen by 4,00,000 bales.

Now, the plan is to rationalise subsidies for agricultural crops in order to encourage cotton cultivation. Cotton ginning industry is 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.