ISLAMABAD: The country's new five-year Textile and Apparel Policy is ready to land in Economic Coordination Committee (ECC) of the Cabinet with the draft altered in line with the recommendations of an inter-ministerial committee, well informed sources in Ministry of Commerce (MoC) told Business Recorder.
One of the major changes in the Policy 2020-25, is to delink duty drawback scheme (DLTL/DDT) with increment in exports.
Ministry of Commerce after meaningful consultations with private stakeholders proposed to set an export target of $20 billion for textiles and apparel industry for FY 2021-22 which has also been approved by the Prime Minister. The export target for FY 2021-22 is cascaded till 2024-25 with a projection to double textiles and apparel exports to $ 40 billion.
According to the Commerce Ministry, strong resolve and long-term commitments of the Federal Government, robust implementation of policy interventions by relevant Ministries/Divisions/Departments and full support from the Finance Division would necessarily be required to keep intact due support on proposed interventions throughout the policy years to achieve set milestones.
The sources said energy (electricity and RLNG) will be provided to the export-oriented units/sectors of textile industry at regionally competitive rates throughout the policy years without any disparity between the provinces. During FY 2021-22, electricity will be provided at US cents 9 per kWh all-inclusive and RLNG at USS 5.5 per MMBTU all-inclusive.
However, an exercise will be conducted jointly with the Ministry of Energy (Power and Petroleum Divisions) during the pre-budget consultative sessions annually to review energy tariffs.
In case of abnormal fluctuations in regional energy prices, the proposed rates may be revised on an average of energy prices for industrial consumers of regional competitors (Vietnam, Bangladesh, etc.) and announced in Federal Budget along with budgetary allocations by Finance Division as actually required by Ministry of Energy so that energy regime would remain fully funded throughout the policy years.
Copyright Business Recorder, 2021