To boost the country's textile export, a separate Export Development Fund (EDF) would be created for the industry, official sources told Business Recorder.
Informed sources in the textile ministry said on the insistence of all the stakeholders, the ministry has added the setting up of EDF to the draft Textile Bill titled "Textile Industry Development, Promotion and Standard Act." The bill has been signed by the federal minister for textile industry in consultation with all the stakeholders and sent it to the Cabinet for approval.
Textile sector earned about $12 billion foreign exchange last year and made good contribution to the EDF, however even less than 20 percent of the contribution was utilised for promotion of textile sector, sources added.
Rupees 13.1 billion have been provided to EDF since its establishment in 1992-93 till 2010-11.Out of the total amount, funds amounting to Rs 3.8 billion have been sanctioned for the textile sector, sources added. The government is also considering setting up a special board for managing EDF in the ministry of textile. The board would comprise of representatives from all textile-related associations.
As the government has a separate ministry for textile sector, similarly the EDF should also not remain part of ministry of commerce so that it could be utilized independently for promotion of the sector on which more than 60 percent of our exports depend, various representatives of textile industry told Business Recorder.
According to representatives, up till now about Rs 23 billion have been accumulated in the EDF, but the fund is usually spent on political basis without any standard criteria.
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