Islamabad, March 20, 2024 – The All Pakistan Textile Mills Association (APTMA) has presented a comprehensive policy roadmap to Commerce Minister Jam Kamal, aiming to elevate the country’s textile exports to $50 billion by 2029.
This ambitious plan hinges on aligning energy tariffs with regional competitors and implementing key policy adjustments to invigorate the textile sector.
Highlighting the critical importance of export-led growth in sustaining Pakistan’s economy amidst substantial external financing requirements, APTMA emphasized the imperative for immediate action. With the country’s gross external financing needs projected at over $25 billion annually for the next half-decade, export-oriented strategies emerge as the linchpin for economic sustainability.
APTMA’s policy roadmap delineates three pivotal pillars: diversification, expansion, and competition. Underpinning these pillars is a multifaceted approach aimed at leveraging Pakistan’s textile potential to the fullest.
Firstly, the roadmap underscores the necessity of incentivizing product diversification to broaden the range of exportable goods. Central to this endeavor is the rationalization of import duties on crucial inputs like purified terephthalic acid and polyester staple fiber, which currently hamper competitiveness. Additionally, fostering investment in manufacturing capacity for man-made fibers (MMF) and promoting higher value-added original brand and design manufacturing are deemed imperative.
Secondly, significant investments are proposed for the augmentation and modernization of manufacturing facilities. APTMA’s initiative to establish 1000 new garment plants signifies a strategic pivot towards higher value-added production, thereby augmenting export capacity and enhancing competitiveness on the global stage.
Moreover, APTMA advocates for the establishment of specialized industrial and export processing zones equipped with state-of-the-art facilities to facilitate investment and foster an environment conducive to growth and innovation. These zones are envisioned to lower entry barriers for new ventures and catalyze the expansion of exports through domestic and foreign investment.
Addressing the critical issue of energy, APTMA underscores the necessity of aligning power tariffs with regional norms to bolster sectoral competitiveness. Presently, Pakistan’s industrial power tariffs stand significantly higher than those of regional competitors, rendering exports less competitive internationally. APTMA proposes several solutions, including reducing power tariffs for industrial consumers, operationalizing the Competitive Trading Bilateral Contract Market (CTBCM), and increasing the cap on solar net-metering for industrial consumers, among others.
In a joint letter to the Commerce Minister, Asif Inam, Chairman of APTMA, and Shahid Sattar, Executive Director, emphasized that the realization of this ambitious export target not only strengthens the textile industry but also propels Pakistan towards economic prosperity and job creation. With the potential to generate up to 1.5 million jobs directly and indirectly, the textile sector’s growth trajectory embodies a promise of opportunity for the nation.
In conclusion, APTMA’s roadmap offers a comprehensive strategy to unleash the full potential of Pakistan’s textile sector, positioning it as a key driver of economic revitalization and sustainable growth. As the government deliberates on policy reforms, the realization of this vision holds the promise of a brighter future for Pakistan’s economy and its people.
