Pakistan's textile sector expects to hit exports of $21 billion by the end of this fiscal year, said All Pakistan Textile Mills Association (APTMA) newly-elected Chairman Abdul Rahim Nasir, a target that is an ambitious 40% higher than last year.
Nasir's remark comes on the heels of Adviser to the Prime Minister on Commerce and Investment Abdul Razak Dawood's recent statement regarding new investment of $5 billion in the textile sector.
“We have been informed that an investment of approximately $5bn is in the pipeline under which 100 new textile units are expected to be established,” Dawood said on his official Twitter account.
In response, talking to a private channel on Friday, Nasir said, last year, as the economy was battering the downturn brought by the Covid-19 pandemic, the State Bank of Pakistan (SBP) launched the TERF policy in order to promote the industry, under which loans were provided at discounted rates.
“Taking benefit from this opportunity, the textile sector saw an investment of $5 billion,” said the APTMA chairman.
He said out of the $5 billion investment some $2 to 2.5 billion was invested on machinery, which is under installation, while the remaining would be injected by June next year.
Meanwhile, Dawood said the incumbent government had reversed the de-industrialisation process, and was pursuing a local manufacturing policy. “Our Make-in-Pakistan policy is beginning to show results,” the adviser said. He said that apart from enhancing export capacity, the new investment is likely to create about 500,000 jobs.
On the other hand, Nasir said Pakistan's textile exports were reviving, and there is massive room to grow.
“This is a big step for the textile industry, as investors have started investing back into the industry after a period of 10 years, which is a very positive sign and we are hopeful that our industry will close at $21 billion worth of exports by the end of this fiscal year,” said the APTMA chairman.
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He said that the global textile market is worth around $800 billion, while Pakistan remains a relatively small player, signifying room for growth.
“If government policies are consistent and long-term, we could hopefully grow by 20 to 25% each year and within three years we could hit the $50-billion export level."