Special relief package for the export sector is highly laudable as it will help increase exports, employment and revenue, a business leader said. Economic Coordination Council has approved electricity tariff of 7.5 cents for export industry including textile, carpet, leather, sports and surgical goods which will increase exports, said Shahid Rasheed Butt, Former President ICCI. The decision has provided relief to the export sector which was uneasy over recent unprecedented hike in power tariff, he added.
Shahid Rasheed Butt said that the relief would be applicable until June, who will reduce the cost of doing business, and help Pakistan regain ground in the export market. He said that the government should announce the same tariff for the export industry for next year so that the investors can take critical decisions regarding expansion of their industrial base.
Pakistani textile sector is best suited to fill the textile gap in the international market but it requires relaxations by the government. He said that the government should encourage apparel exports which fetch 6 to 9 times more foreign exchange as compared to yarn and cotton. A neighbouring country used to export raw cotton and yarn worth nine billion dollars to China which will process it and sell it for almost $60 bn, he informed.
He said that Pakistan is set to become a textile superpower for which the textile policy should be reviewed, cotton production should be promoted. Moreover mega textile parks should be established across the country where spinning, weaving, knitting, processing and readymade garments etc. can work together to improve issues related to labour, taxation, transportation, and enjoy integrated common infrastructure to reduce the cost of doing business.
A complete manufacturing eco-system for textiles and apparel industry at one location can enhance productivity and increase efficiencies to change the fate of Pakistan, he said.