Pakistan’s textile sector increases to full capacity production after government removed taxes on raw cotton

The Textile sector of Pakistan has spiked to full capacity production after the government removed duties and taxes on the import of raw cotton last month.

Pakistan is getting bigger export orders since China; the world’s largest textile exporter,  is fighting against the coronavirus for the past few months.

The former chairperson of the All Pakistan Textile Mills Association (Aptma), Asif Inam, told a source, “The textile sector is working on full capacity.”

Inam further said, “If the developments in textile industry support go well, the government will be able to achieve the set export target of $24-25 billion this fiscal year (July-2019 to June 2020).”

Capacity Constrained Zone

“We can’t take more export orders as we have entered into the capacity constraint zone,” Inam added.

The Governor of the SBP, Reza Baqir, said, “There is up to a 40 per cent volumetric growth in the textile exports. The export of finished goods is increasing, while the export of raw material, including yarn and cotton, are decreasing, which are positive developments for the country’s economy.”

Corona Virus

The world textile buyers have diverted their buying orders to Pakistan since 70 to 80% production of China is closed due to the spread of the coronavirus.

The virus has affected a significant number of countries, as over 2,300 people have died and over 75,000 people were infected.

Inam further stated, “Once the government reveals the policy, the textile exports will start increasing at 10-15% per annum during the next five years.”

What are your views on this? Share in the comments bar below.