Pakistan's textile policy which was introduced in 2009 lapsed on June 30, 2014. And there’s no indication of a fresh one which means the country’s textile sector is in a limbo. It has no guidelines on how to deal with global buyers for forthcoming seasons. The government has neither evolved a strategy to meet the target of textile exports worth a $1 billion to the EU under the GSP plus facility nor has it reintroduced a textile policy to make things clear for the textile exporting sector.
The federal commerce ministry and its affiliated Trade Development Authority of Pakistan (TDAP) are responsible for streamlining the country's economic growth. The country's total export of readymade garments rose 8 per cent in July-May 2013-14 compared to the same period last fiscal. Export of readymade garments increased by 12.33 per cent in May 2014 compared to last year. The quantity of readymade garments surged by 31 per cent in May 2014 compared to May 2013. In terms of volume readymade garment export grew by 2,359,000 dozens to 26,987,000 dozens in July-May 2013-’14 as compared to the commodity's export of 24,628,000 dozens in the same period last fiscal year.
Textile exports to the EU have grown by 7 per cent. This is a routine trend indicating that GSP Plus is not really paying off for Pakistan’s economy.