KARACHI: The All Pakistan Textile Mills Association (APTMA) has called on the government to sustain regionally competitive energy tariffs (RCETs) to ensure the continued growth of the textile sector, which remains vital to Pakistan’s economy.
In a statement released on Tuesday, APTMA highlighted the impressive performance of the textile and apparel industry, with exports increasing by 23% year-on-year to $15.4 billion in 2020-21, up from $12.5 billion in 2019-20. The trend has persisted, with textile exports surging by 26% in the first 10 months of the current fiscal year, growing from $12.7 billion to $16 billion.
According to APTMA, the sector is on track to achieve $21 billion in textile and clothing exports by the end of the fiscal year 2021-22, making a significant contribution to Pakistan’s balance of payments. Looking ahead, textile exports are projected to reach $27 billion in the next fiscal year, thanks to enhanced production capacities developed through initiatives such as the Temporary Economic Refinance Facility (TERF) and the Long-Term Financing Facility (LTFF).
However, APTMA has raised concerns over reports that the government is contemplating non-tariff barriers (NTBs), such as a voucher scheme, to limit the import of raw materials. The association warned that imposing such barriers could have disastrous consequences, disrupting the supply chain and undoing the progress made in recent years.
“The imposition of non-tariff barriers would be a step backward,” stated APTMA, emphasizing that any deviation from the current policies could lead to severe negative outcomes. To sustain growth, APTMA reiterated the importance of RCETs across the entire value chain and the unrestricted import of raw materials and spare parts critical to the industry.
APTMA further urged the government to maintain its support for the textile industry, cautioning against policy changes that could destabilize this cornerstone of the national economy. Ensuring stable energy tariffs and smooth access to essential imports would enable the sector to maintain its upward trajectory and meet ambitious export targets.
With the textile industry serving as Pakistan’s economic backbone, APTMA’s call for consistent and competitive policies is expected to resonate with stakeholders aiming to boost the country’s economic resilience.