The All Pakistan Textile Mills Association (APTMA) has announced that it will invest $5 billion to build 100 new textile units.
In a meeting held last week, APTMA Patron-in-Chief, Gohar Ejaz, said that he expected the construction of most plants to be completed by February 2022.
He said that he hoped Pakistan, with the help of this initiative, would achieve its annual textile export target of $21 billion this year.
Abdul Razak Dawood, Adviser for Commerce and Investment to Prime Minister Imran Khan, confirmed the deal through his Twitter account.
The commerce adviser tweeted that an investment worth about $5 billion was in the pipeline, under which 100 new textile units are expected to be established.
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
“Apart from enhancing export capacity, these are likely to create about 500,000 jobs,” Dawood said.
The adviser attributed the win to the government’s new “Make in Pakistan” policy, which encourages local production and domestic manufacturing.
Under the program, the government aims to develop long-term policies to encourage investment in Pakistani manufacturing. This is to counter heavy reliance on imports, ease pressure on the external account, and allow the country to produce high-value exports.
In addition, it is expected to create employment, enhance human capital, and boost productivity.
Pakistan’s textile and clothing exports grew by 28.67 percent to $2.93 billion in the July-August period, as compared to $2.28 billion in the same period last year, according to data released by the Pakistan Bureau of Statistics.
During the COVID-19 pandemic, the State Bank of Pakistan provided financial support to the textile sector through the Temporary Economic Refinance Facility (TERF) and Long Term Financing Facility (LTFF).
The APTMA is a trade organization that represents Pakistan’s vital textile industry and represents more than 400 textile companies.