Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood expresses appreciation at receiving the planned investment of $5 billion in the textile sector of Pakistan for the purpose of establishing 100 new units.
He issued a statement on Thursday, “Our Make in Pakistan policy is beginning to bear fruit. We have been informed that investment of approximately $5 billion is in the pipeline under which 100 new textile units are expected to be established.”
He further added that other than enhancing the export capacity, the new units would also generate around 500,000 jobs.
According to Dawood the Pakistan Tehreek-e-Insaf (PTI) government has upturned the de-industrialization process in the country and helped the industrial sector get on the path to sustainable growth.
Analyst at Topline Securities Saad Ziker said that the textile sector was on its way to increase exports after foreign shipments increased by 29% year-on-year to $2.9 billion during the first two months of the fiscal year 2021-22.
He added that the textile industry “is often termed the backbone of Pakistan’s economy, therefore, there is a need to enhance support for the sector in terms of investment and subsidies.”
While discussing the “Make in Pakistan” policy, Ziker said that fresh investment under the initiative would direct Pakistan’s textile industry towards success.
He said, “It will increase the number of textile units and reduce unemployment by creating around half a million employment opportunities”.
Ziker mentioned that based on the Pakistan Cotton Ginners Association an estimated 3.8 million bales of cotton will reach by October 1, 2021, in comparison to 1.9 million bales during the same season last year.
He added that the twofold increase had dismissed fears of a shortage of cotton while providing relief to the exporters as it will allow them to fulfill their export orders on time.
Analyst at Arif Habib Limited Arsalan Hanif said that textile companies were at present relishing excessive export orders as they were booked for nearly the entire current fiscal year.
Textile exports were at $15.4 billion during the fiscal year 2020-21 compared to $12.5 billion in 2019-20, revealing growth of 23%.
Hanif said, “Conducive policies of the government coupled with high export orders have encouraged textile companies to expand their production capacities, which is expected to increase Pakistan’s exports in the foreseeable future”.
He forecasts the investment of $5 billion in the textile sector to grow textile exports to $25 billion by 2025 apart from creating new job opportunities.
