FPCCI prepares research report on textiles under PM’s instructions

Sewing background with color threads, meter and scissors

ISLAMABAD: The Research and Development (R&D) department of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) has prepared a detailed document on the issues of Pakistan’s exports. The study was conducted with the consultation of Export Advisory Committee of FPCCI which was formed in compliance with Prime Minister’s directives to submit proposals for enhancing exports from Pakistan.

 The report contains issues of the export-oriented sectors including the textile sector which has the largest share in Pakistan’s exports. The report in textile sector highlighted the area of concern that is Pakistan’s competitors have set targets for textile exports while Pakistan far behind them.

Bangladesh set a target to achieve textile exports of $60 billion, India set its target to increase exports to $30 billion, while Pakistan’s total exports have decreased from $25 billion to $20 billion, in which the textile sector’s share is 61 per cent.

 The report also identifies various problems being faced by the textile sector including the high cost of doing business with approximately 11 per cent additional multiple taxes and surcharges. Low production of cotton bales, limited implementation of government announced support in STPF and the textile package, lack of facilitation and provision of raw materials to the textile sector.

 The report explored that the China’s export of textile products share is 36 per cent, Vietnam contributes 12.4 per cent, similarly Pakistan’s share is 7 per cent, therefore a trilateral products specific agreement between China, Pakistan and Vietnam will acquire 50 per cent share of the Global Textile market.