FPCCI research highlights main issues faced by Textile Sector

The Research & Development Department of FPCCI prepared a detailed document on the issues of Pakistan’s Exports. The study was conducted with the consultation of Export Advisory Committee of FPCCI which was formed in compliance of Prime Minister Directives to submit proposals for enhancing export from Pakistan.

The report contains issues of the export oriented sectors including textile sector which has largest share in Pakistan’s exports. The report in textile section highlighted the area of concern that is Pakistan’s Competitors have set targets for textile exports while Pakistan far behind them. Bangladesh set target to achieve textile exports US$ 60 billion, India set target to increase export U$30 billion, while Pakistan’s total exports has decrease from US$25 billion to US$20 billion nearly in which textile sector share 61%.

The report also identifies various problems being faced by Textile Sector including high cost of doing business approximately 11 percent multiple taxes and surcharges. Low production of Cotton bales, limited implementation of Government announced support in STPF and Textile Package, in competitive utility and raw materials to the textile sector.

The report explored that the China’s export of textile products share is 36%, Vietnam contributes 12.4% similarly Pakistan’s share 7%, therefore a trilateral products specific agreement between China, Pakistan and Vietnam will acquire 50% share of the Global Textile market.