Indian Textile Package A Threat To Pakistan’s Industry
Textile exporters have urged the federal government for a comprehensive textile package to facilitate the domestic industry and attract more investment in the sector. “In the current situation, when our competitors are announcing billions of dollars packages for their industries, and in absence of a textile package Pakistan’s industry cannot compete in the world market,” said Shabir Ahmed, Patron-in-chief Pakistan Bedwear Exporters Association.
He said that recently Indian government approved Rs 60 billion special package for textiles & apparel sector to create 10 million new jobs in three years. As per estimates, Indian textile package will attract investments of $11 billion, besides generating $30 billion in exports. In addition, these measures also include additional incentives for duty drawback scheme for garments, flexibility in labour laws to increase productivity as well as tax and production incentives for job creation in garment manufacturing, he informed.
Shabir said that India had took this step to facilitate the domestic industry and attract more investment in the textile sector, as over the last few years, Indian apparel manufacturing had shifted to countries like China which had cost advantages. He said that India had already advantages of economies of scale and Pakistan was facing a tough competition in the world market. “We believed that this package is a threat for the Pakistan’s textile industry as well as exports as these measures will help Indian exporters to capture the foreign markets,” he added.
Indian officials are confident that they will overtake Vietnam and Bangladesh in garment exports within next three years if the package is properly implemented, Shabbir mentioned. He said that there was need that Pakistan’s government should also announce a comprehensive textile package to facilitate the country’s largest export sector, otherwise Pakistan may lose some foreign markets.
“While, our competitors are facilitating their industries, our government is not taking preventive measures to protect the domestic industry,” he said. He said that UK’s departure from EU may also put some negative impact on Pakistan’s exports and now exporters were worry about the GSP plus status. Shabir urged the ministry of commerce for proper marketing and study of foreign market that can help exporters to boost their exports and earn more foreign exchange for the country.

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