After the Government of Pakistan retreated from taxes and duties on the import of raw cotton in January, the textile manufacturing sector of Pakistan; the largest export-oriented sector of Pakistan, has surged to its full potential.
Furthermore, since China is being affected by the lethal Coronavirus virus, Islamabad is at the higher end of the bargain of Pakistan textile export orders, which are the largest textile exporters around the globe.
All Pakistan Textile Mills Association (APTMA) former chairman Asif told, “Pakistan textile sector is working on full capacity.
Pakistan becomes a key textile order source for international buyers
Considering the saddening circumstances in China at the moment, the entire pattern has changed for international textile buyers because China’s (70-80% production) is closed currently. In order to fight against the deadly coronavirus disease. This definitely sets the prospects in motion for Pakistan because the global market for textile has positioned their direction of purchase towards Pakistan.
Even though Pakistan has received an adequate amount of export orders, now Pakistan textile export trade is booming at maximum capacity.
Officials have claimed that the textile business could be doubling over the next five years. If the government transcend over the hurdles regarding high energy prices, gas outages, and taxation issues.
Since the government withdrew 3% regulatory duty, 5% of sales tax on cotton import, and additional customs duty, from January 15, 2020; the cotton import splendor has paced upwards.
Moreover, Pakistan is assessed for 7.5 to 8 Million bales, this year. Previously, local production was approximately 15 million bales, which is almost half of what was required in the fiscal year 2020.
However, Pakistan has already produced around half of the domestic requirement; the forecast is highly likely to be of high records in terms of import in Pakistan.