More than 1,600 textile factories shut down in the country in the last sixteen months according to Interim Commerce Minister Dr Gohar Ijaz.
According to a report in Dawn, the minister highlighted that the shutdown of industries was across the entire value chain, from ginning, weaving, spinning, and processing to garment manufacturing. He added that many industries are also operating at reduced production levels.
The commerce minister said that around 20 percent of the overall installed capacity in the textile and clothing sector was impacted in the last 16 months.
The minister told the newspaper that the government is finalizing a strategic framework to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products.
The policy announcement will unlock the full production capacity potential within the country, the minister added.
According to the latest data released by the Pakistan Bureau of Statistics (PBS), Pakistan’s exports in August 2023 stood at 2.36 billion, down 4.8 percent over exports of $2.48 billion recorded in August 2022 while registering an increase of 14.3 percent over the exports of $2.07 billion recorded in the previous month.
The commerce minister attributed the month-on-month growth to the positive impact of the policies of the caretaker government. It is important to highlight here that the members of caretaker Prime Minister Anwaar-ul-Haq Kakar’s cabinet took oath on August 17.
Ejaz also said the Federal Board of Revenue (FBR) will transfer Rs. 31 to the exporter’s account tomorrow (Monday). He added that the payment will be followed by another refund payment to exports soon which will partially solve the working capital challenges faced by the exporters.
Source: ProPakistani