Five-year textile policy: Facilities worth Rs950 billion proposed
Last updated on: 22 December,2020 02:07 pm
Policy has been formulated to reduce the input cost of the textile and clothing sector.
ISLAMABAD (Dunya News) – Facilities/incentives of around Rs950 billion including provision of electricity to the sector at 7.5 cents/kWh have been proposed under new five-year textile policy.
According to sources, under the draft of five-year textile policy, the target of textile exports by 2025 has been set at $20.8 billion by the government.
The policy also recommended provision of RLNG at $6.5 per mmBtu; and domestic gas at Rs786 per mmBtu.
The impact of electricity at cents 7.5/kWh is estimated to be Rs250 billion; RLNG — Rs111 billion and DLTL for textiles and apparel products — Rs400 billion.
Other incentives in the proposed policy include unchanged Long-Term Financing Facility (LTFF) and Export Financing Scheme (EFS) rates; review of LTFF and refinance scheme for SMEs and indirect exporters; and launch of Brand Development Fund.
The proposed policy has been formulated to reduce the input cost of the textile and clothing sector and to make it competitive with regional players, sources said.
In addition, mass level training programmes would be launched, especially on industrial stitching, whereas textile marketing strategy would be reviewed.
As per the draft textile policy, the government would offer incentives for international buying offices opening their offices in the country.