The government plans to publish an ambitious Textile and Apparel Policy 2020-25 by next month, since consultation for the policy’s finalisation is nearly complete. This was said by Abdul Razaq Dawood, Advisor to the Prime Minister for Commerce and Investment, at a media briefing here on Thursday.
The proposed programme aims to increase textile and apparel exports to a minimum of $15.7 billion and a maximum of $20.8 billion by the end of 2025. The proposal was delayed due to a variety of technical difficulties, including the revenue implications of tariff concessions, energy rates, etc. However, the adviser stated that the technical obstacles had been overcome and that the engagement process with stakeholders was also completed.
During the fiscal year 2020-21, goods exports increased by 18 percent to $ 25.3 billion, the highest level in Pakistan’s history. “This is a great success by our exporters considering the challenges imposed by COVID-19 at home and the resulting contractions in our key markets,” stated the Prime Minister’s Adviser on Commerce and Investment. He asserted that another long-awaited new trade strategy, the draft policy on Strategic Trade Policy Framework (STPF) 2020-25, has also been submitted to ECC for approval.
The Tariff Policy Board of the Ministry of Commerce (MOC) was established under the National Tariffs Policy with the primary goal of improving the industry’s competitiveness. Tariffs on almost 4000 inputs (raw materials, intermediate and capital products) have been rationalised since 2018-19. Exports are anticipated to rise by 5% over the next two years under present policies. Next year, it is intended to research, analyse, and modify the tariff structure of the agriculture and transportation and logistics sectors.