Pakistan’s textile exports to the European Union increased by 18 per cent this fiscal year but exports to the rest of the world registered negative growth of 3.5 per cent.  Acute energy shortage has badly hindered Pakistan’s exports growth. A large number of textile units have shut operations due to energy constraints. Textile exporters say they will not be able to get complete benefit from duty-free access to the European Union unless the government takes serious measures to ensure a regular supply of gas and electricity to run the manufacturing units and resolve the energy shortage.

The government has been urged to redesign and bring consistency in policies on taxes, reverse the declining trend of investment in the textile sector, bring interest rates down and release the liquidity on drawbacks and refunds. With better access to the EU market, Pakistan is expected to add at least a $1 billion in textile exports every year and reach the $25 billion mark in five years. 

Pakistan is due to come out with a textile policy. Manufacturers say it should encapsulate the entire textile spectrum, providing directions for financial and industrial facilities as well as removing hurdles and providing the necessary incentives to the value-added sector to enhance textile exports.