The Federal Cabinet on Wednesday approved textile policy for the next five years with a view to turning around the dwindling growth of textile sector on a sustainable basis. Addressing the Special Cabinet meeting Prime Minister underlined the need of increase in export growth, hoping that five years textile policy equipped with appropriate policy instruments and required strategies would bring radical improvements in the sector.
The salient features of the policy will be unveiled by Minister for Textile on media. He said that policy seeks to address the challenges of the sector on a sustainable basis in order to come up to the expectations of the industry. Gilani said the policy will give the vision that was needed for the textile sector.
He said that historically textile Industry has had its highs and lows with a promising beginning and robust growth but somehow lost the momentum halfway and today country is only producing cheap primary products. Gilani said Pakistan is no longer known for its premium quality cotton and cotton products as value conscious competitors have edged us out in the international market.
He pointed out that Pakistan is the 4th largest producer of cotton but is ranked 12th in global textile exports. This, he said, has to improve by a great deal for the benefit of our people. The Prime Minister further said that at present the textile industry is beset with energy shortages, security concerns and high cost of capital. Textile exports last year, he added, registered a negative growth of 9.5%, which is a matter of serious concern. He said textile sector is plagued by inherent problems which are historical and complex.
Gilani said we also need to look at external factors which affect our industry seriously. He said a quota-free trade regime has brought more challenges than opportunities while exposing the ill-preparedness of our textile industry in a competitive global grade environment.
He said the recent global economic meltdown and sharp falls in trade volumes have thrown up new challenges. Last year, Pakistan''''s total exports were down by 6.7% and textile exports 9.5% mainly because of a shrinkage in global demand, he added. Gilani said that keeping both domestic and global contexts in mind, it is necessary than ever before to come up with a comprehensive response strategy. He hoped that the textile policy 2009-14 is equipped with appropriate policy instruments.
The Prime Minister said the ultimate goal of the textile policy is the creation of an enabling environment for the industry to grow. Textile sector, he added, has been the major employment provider and foreign exchange earner and must continue to be so. He said focus on this sector should give a clear message that this government puts poverty alleviation, job generation and industrial development very high on its agenda and is taking all possible steps in this direction.
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