Pakistan to implement new textile policy this month with $20 bln export target

A Pakistani shopkeeper hangs fabric at his shop in a market in Lahore on September 16, 2019. (AFP/File)
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Updated 13 November 2020
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Pakistan to implement new textile policy this month with $20 bln export target

  • Textile policy 2020-25 approved by Prime Minister Imran Khan in March but awaiting official announcement
  • Fabrics and apparel have an average share of about 54 percent in Pakistan’s overall exports

KARACHI: Pakistan will launch a long-awaited new textile policy this month to increase fabric and apparel exports from $12.86 billion to $20.86 billion in five years, the commerce minister has said.
The country’s previous five-year textile policies — for 2009-14 and 2014-19 — aimed at increasing fabric and apparel exports to $25 billion and $26 billion respectively, but the targets were never achieved.
The 2020-25 policy was approved by Prime Minister Imran Khan in March this year, but still awaits official announcement.
The policy, according to a draft seen by Arab News, aims to attract domestic and foreign investment into textile and apparel supply chains and develop value-added sectors.
“The policy will be implemented this month,” Abdul Razak Dawood, the prime minister’s adviser for commerce and textile, told Arab News in an interview this week.
The textile minister said his government had already factored in the impact of the coronavirus outbreak in the new policy and was open to taking additional measures after the latest COVID surge and the possibility of a vaccine in the coming months.
“We had envisaged a higher target but the new wave of COVID has arrived and I am worried that things may change but let’s see what this COVID spike is doing”, Dawood said. “There are talks of vaccine coming in and if the vaccine comes in then the situation will change.”

Despite being the world’s fourth largest producer and third largest consumer of cotton, Pakistan’s comparative advantage is diminished by low value-added textile products.
This year’s textile export target has been set at $12.86 billion, with $9.4 billion from value added and $3.3 billion from raw or semi-finished textile products, according to the draft of the 2020-25 policy. In 2025, the government plans to reach $20.86 billion — $16.29 billion from value-added goods.
Textile exporters say they are anxiously waiting for the new policy to be announced to plan their future actions.
“Textile sector is anxiously waiting for the policy. It is already long delayed,” Ijaz Khokhar, chief coordinator of the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), told Arab News.
“People are in a kind of panic in the current situation of pandemic ... The policy is urgently needed for future planning,” he said.
Pakistan’s textile sector contributes nearly one-fourth of its industrial value-added products, provides employment to about 40 percent of industrial labor, consumes 40 percent of banking credit to the manufacturing sector and accounts for 8.5 percent of gross domestic product (GDP).
Ministerial and All Pakistan Textile Mills Association (APTMA) data show that textile products maintain an average share of about 54 percent of the country’s overall exports.
In the previous fiscal year, Pakistan’s textile exports reached $12.5 billion.


Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

Updated 55 min 2 sec ago
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Cross-border clash breaks out between Pakistan and Afghanistan amid rising tensions

  • Border residents say exchange of fire in the Chaman border sector lasted nearly two hours
  • Both governments issue competing statements blaming the other for initiating the violence

ISLAMABAD: Pakistan and Afghanistan witnessed yet another border clash, according to officials in both countries who spoke in the early hours of Saturday, with each side accusing the other of launching “unprovoked” attacks.

Fighting erupted in Pakistan’s southwestern Chaman border sector, with an AFP report saying that residents on the Afghan side of the frontier reported the exchange of fire began at around 10:30 p.m. (1800 GMT) and continued for roughly two hours.

The incident underscored how tensions remain high between the neighbors, who have seen deadly clashes in recent months despite several rounds of negotiations mediated by Qatar and Türkiye that resulted in a tenuous truce in October.

“There has been unprovoked firing by Afghan Taliban elements in the Chaman Sector which is a reckless act that undermines border stability and regional peace,” said a Pakistani security official on condition of anonymity.

“Pakistani troops responded with precision, reinforcing that any violation of our territorial integrity will be met with immediate and decisive action,” he continued.

The official described Pakistan’s response as “proportionate and calibrated” that showed “professionalism even in the face of aggression.”

“The Chaman Sector exchange once again highlights the need for Kabul to rein in undisciplined border elements whose actions are destabilizing Afghanistan’s own international standing,” he added.

Relations between Pakistan and Afghanistan have grown increasingly bitter since the Taliban seized power in Kabul following the withdrawal of international forces in August 2021.

Islamabad accuses the Taliban administration of sheltering anti-Pakistan militant groups such as the Baloch Liberation Army (BLA) and Tehreek-e-Taliban Pakistan (TTP), which have carried out deadly attacks in its western provinces bordering Afghanistan, targeting civilians and security forces.

The Taliban deny the charge, saying Pakistan’s internal security challenges are its own responsibility.

The Pakistani security official said his country remained “committed to peaceful coexistence, but peace cannot be one-sided.”

“Attempts to pressure Pakistan through kinetic adventurism have repeatedly failed and will continue to fail,” he said. “The Chaman response has reaffirmed that message unmistakably.”

He added that Pakistan’s security forces were fully vigilant and that responsibility for any escalation “would solely rest with those who initiated unprovoked fire.”

Mosharraf Zaidi, spokesman for Pakistan’s prime minister, also commented on the clashes in a social media post, saying the Afghan Taliban had “resorted to unprovoked firing along the border.”

“An immediate, befitting and intense response has been given by our armed forces,” he wrote.

Afghan authorities, however, blamed Pakistan for the hostilities.

“Unfortunately, tonight, the Pakistani side started attacking Afghanistan in Kandahar, Spin Boldak district, and the forces of the Islamic Emirate were forced to respond,” Taliban spokesman Zabihullah Mujahid said on X.

Border clashes that began in October have killed dozens of people on both sides.

The latest incident comes amid reports of back-channel discussions between the two governments, although neither has publicly acknowledged such talks.