LAHORE             -        The All Pakistan Textile Mills Association (APTMA) Punjab Senior Vice Chairman Abdul Rahim Nasir has urged the government to provide five-year policy for textiles and clothing to attract long term investment. He was speaking to a delegation of Trade & Development Authority of Pakistan (TDAP), including fifteen (15) probationary officers from 26th Specialized Training Program (STP) at the APTMA Punjab office on Tuesday.

He said the textile industry is planning to establish as many as 1000 garments plants near major textile producing cities, including Lahore, Sheikhupura, Faisalabad, Kasur, Multan, Sialkot, Rawalpindi, Karachi, and Peshawar.

The government should allow Long Term Finance Facility (LTFF) to both direct and indirect exporters for building infrastructure in addition to existing scheme for plant and machinery, he added.

He said the prospective investors reluctant to make new investment decisions due to high cost of doing business and textile industry has lost technological advantage over its competitors. The competitors are giving various investment incentives to promote investment, production and exports. He lamented that Pakistan’s textile and clothing export share in global trade has dropped from 2.2% to 1.7%, therefore, fresh investment is an urgent need of the hour. However, he stressed that the textile exports could increase to $50 billion in 2019 from existing level of $13 billion at present provided that the government ensures long term policy for the textile industry.

According to him, only the availability of regionally competitive energy i.e. Gas @ 6.5$/mmBTU and electricity @ 7.5 US cents/kWh can materialize this dream of fresh investment in the country.

Also, he said, the government should extend duty drawback scheme for 5 years and drawbacks should be increased every year by 1% for garments (up to 12%) and made-ups (up to 10%).