The APTMA Patron-in-Chief Gohar Ejaz is highly optimistic that textile exports will hit $21 billion by the end of FY22. The $21 billion target is 40% more than last year’s textile exports of 15.5 billion dollars. The government has set a target $20 billion textile exports.
Gohar Ajaz Patron in chief APTMA hopeful textile exports to hit 21 billion dollars in FY22
farmers to get Rs 400 billion more to Rs 600 billion, matching international prices
textile industry to invest US$5 billion by adding 100 new textile plants to provide 500,000 new jobs— Haris Zamir (@zamirharis) October 12, 2021
5 billion dollars are being invested in the value-added sector of the textile industry. This was informed by SAPM Abdul Razzak Dawood through his twitter account. 100 new textile units are being established in Pakistan because of this $5 billion investment. Out of the $5 billion investment, an estimated $2 to $2.5 billion is being used on the installation of machinery, while the remaining will be pumped in by June 2022.
Our Make-in-Pakistan policy is beginning to show results. We have been informed that an investment of approximately USD 5 Billion is in the pipeline under which 100 new textile units are expected to be established. Apart from enhancing export capacity,
— Abdul Razak Dawood (@razak_dawood) October 7, 2021
According to SAPM Dawood, this investment will create 500,000 jobs in Pakistan. In August 2020, Prime Minister (PM) Imran Khan announced that the government was pursuing a Make-in-Pakistan policy in a bid to promote export-oriented industrialization in Pakistan.
these are likely to create about 500,000 Jobs. This government has reversed the de-industrialisation and Insha’Allah, we are now on a path of industrial growth in Pakistan.
🇵🇰 @aliya_hamza @mincompk @investinpak #Pakistan #PakistanMovingForward #textiles #industry
— Abdul Razak Dawood (@razak_dawood) October 7, 2021
According to APTMA’s Secretary-General and Executive Director Shahid Sattar, another investment of $500 million into the textile sector is in the pipeline. The capacity utilization as a result of these investments, and the upward trend of prices in international markets will further aid the increase in textile exports. This investment and other positive indicators have boosted the confidence of the stakeholders in the textile sector.
Read More: Pakistan’s Textile Exports: Growth and Trends
Global textile market is approximately worth $800 billion. Keeping the current dynamics in mind, Pakistan is on its way to become a key player in the global textile market. According to the APTMA chairperson, if government policies are consistent and long-term, then the textile sector will hopefully grow by 20 to 25% each year and within three years, Pakistan would hit the $50-billion export level.
Pakistan’s textile sector is rebounding strongly from the pandemic-induced economic downturn. The textile export figures for the first quarter of the FY22 speak for themselves. Pakistan’s textile exports grew by a staggering 26% to $1.503 billion in the last month of the Q1. In August, exports shot up by 45% to $1.5billion in comparison to $1billion in August 2020. The textile exports went up by 24% to $15.5billion in FY21 from $12.5bn level in FY20.
Pakistan’s textile exports have risen by approximately 28% in the first quarter of the current fiscal year. The exports by the textile industry recorded an increase by 26% in September and by 28.67% in the July-August period.
The textile sector is effectively utilizing a competitive power tariff at the rate of 9 cents per kWh and gas at $6.5 per mmBtu for the last two years and this package has now been extended to cover the length of FY22.
Prime markets for Pakistani textile goods are the North American and European countries. The easing of COVID-19 induced lockdowns in these countries is aiding the rise in textile exports from Pakistan