The textile industry of Pakistan has been using every government forum to influence Prime Minister Nawaz Sharif to announce a Rs. 200 billion grant for the upgrading of the textile industries. The industry already enjoys uninterrupted electricity and gas supply.
The particular industry enjoys these benefits on their claims to be the biggest export and job creating industry of Pakistan, but in reality, Pakistan’s exports are on the downslide. The country seems to be importing more textile products than exporting. The industry is also the worst tax-paying sector.
Interestingly a few textile industrialists have been named in Panama leaks having off-shore accounts containing millions of dollars. But, they have been declaring losses for the last many years.
Financial incentives should be withdrawn from the textile sector as it is a very old and established industry and instead the budget should be utilised in setting up new industries in Pakistan or to improve agriculture. It should especially be used for the cotton plantation industry which has one of the lowest yields for cotton farms in the region. A policy, whereby all incentives allowed to an individual industry should not be higher than 75 per cent revenue received to the government should be established to ensure Pakistan’s budget is not wasted on the failing industries.