The textile industry in Pakistan wants relief measures from the government. It wants power tariff lowered and has asked the government to impose a 20 per cent regulatory duty on import of textile raw materials, from yarn to garments, which would ensure the revival of the industry. The industry feels hurt by the unbridled entry and dumping of highly subsidised textile products from India and China.

Since the import duty on textile products in Pakistan is merely five per cent against 30 per cent in competition countries, the industry has sought an immediate upward revision. Textile units want rebate on textile exports as an incentive under the focus market policy even if the government is unable to devalue the rupee against the dollar. They say competitor countries are already offering a heavy rebate on exports.

Textile industrialists in Pakistan say the high cost of doing business can force the closure of textile units. They are planning downstream integration to add another $13 billion to exports and help the country get rid of loans from international donors at an eight per cent mark-up. The aim is to create another 13 million jobs in the country. Pakistan is expected to announce a textile package soon.