Textile Exporters Receive Numerous Orders, Production Capacity to Reach 90% By Next Quarter

As businesses reopen worldwide, manufacturing companies in Pakistan mainly in the textile sector are receiving orders from various exporting countries that could result in utilization of 80-90% production capacity by next quarter, leading towards an export of $17.5 billion in the financial year 2020-21.

The export earning of the textile sector is likely to increase by $3 billion this year keeping in view the demand in the international market, which will not only increase exports of the sector with a possible value of $17.5 billion but it could enhance the overall exports of the country by $27 billion in the next financial year, said All Pakistan Textile Mills Association (APTMA) in a letter sent to Prime Minister.


The export earnings of the textile sector will also support the dwindling foreign exchange earnings in case of dwindling inflows of remittances, the letter added.

However, textile exporters could also achieve these benchmarks if the government revisits the financial bill and introduces incentives for the sector, APTMA said.

APTMA demanded competitive pricing of energy including electricity and gas, asking the government should reduce the rate of sales tax and ensure quick issuance of refunds.

Further, the turnaround tax should be reduced from 1.5% to 0.5% for the textile exporters and manufacturers.

The export receipts of the country are likely to offset the projected 20% decline in remittances in the next financial year, moreover, it will contain the trade and current account deficit of the country in the next financial year, APTMA said.

The gradual increase in the production capacity of the textile sector will also provide support to local industries and generate employment for thousands of workers besides investments from foreign and local investors.

  • Government must not give any undue incentive to these textile exporters. They are the biggest opportunist and are only interested in their own wealth management. They have deprived so many labors from their livelihood in early Corona days.

    • there is no other industry in pakistan so what can the govt do? we need dollars to finance imports.

  • It is only sector generating labour and earning F exchange this time not asking any extra benefits only level playing field and instant refund of their own money in the form of sales tax only after Export which is their legitimate right as per universal law around the world for export industry

    • Not asking for any extra benefits? They are the biggest black mailers. Look at all the billionaires. Most of them are from Textile industry whi only did their wealth management. They hire and fire labour on 24 hours notice.

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