Karachi, Sep 17 (PTI) Two Chinese companies have announced plans to set up textile plants in Pakistan, in a major boost to the country’s textiles industry which accounts for approximately 50 to 60 per cent of the total exports.
Rainbow Industries Ltd and Shaoxing Chemical Industry will jointly set up the plants to produce raw materials for the textile industry, an official of the Special Investment Facilitation Council (SIFC) said.
The joint venture by two Chinese companies is expected to bring in millions of dollars in investment, targeting the production of affordable raw materials for local textile manufacturers.
The official said experts had put the textile industry’s potential to export at USD 50 billion or more per year by 2030, and setting up of plants by the Chinese companies would vitalise the industry and boost exports.
Pakistan’s textile group exports increased by around 1.41 per cent during the first 11 months (July-May) of the current fiscal year 2023-24. It remained at USD 15.241 billion as compared to USD 15.029 billion during the same period last year, according to the Pakistan Bureau of Statistics (PBS).
The SIFC official also said the government was working on plans to revise energy tariffs and other issues faced by the textile exporters industry after it had announced a 10-year duty-free machinery import scheme and the establishment of units in special economic zones for foreign investors.
Vice President of the All Pakistan Textile Mills Association, Naveed Ahmed, said they were in talks with the government to ensure the industry is run seamlessly and without any disruption.
“We contribute around 55 per cent to the overall export earnings, and we have asked the government to reduce the interest rate to 6-7 per cent from 19.5 per cent, supply electricity at 8-9 cents per kilowatt-hour (kWh) instead of 14 cents and remove all unreasonable taxes on imports, exports and earnings to enable the industry to run its manufacturing units properly,” he said.
The official said the Pakistani textile industry got a significant boost with the organisation of a two-day textile expo last month which attracted over 300 exhibitors from countries including China, Malaysia, Turkiye, and Iran, bringing together key industry stakeholders and business leaders to discuss improvements in the sector.
Pakistan’s textile industry hit a historical high of exports worth USD 22.1 billion in 2022.
Pakistan remains the eighth largest exporter of textile products in Asia, and 45 per cent of the total labour force is associated with the manufacturing sector in the country. PTI CORR GRS GRS GRS
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