ISLAMABAD: More than 1,600 textile industries had been shut down during the PML-N led coalition government, it emerged on Sunday.
As the commerce ministry prepares to announce a strategy for resuming the operations of more than 1,600 textile enterprises that were closed in the previous 16 months, a high-ranking government official was quoted in Dawn that the overall export earnings showed a moderate month-over-month recovery in August.
A strategic framework is being finalised to provide regional competitive energy pricing, working capital support, speedy refund payments, enhanced market access, and diversification of products. “The policy announcement is scheduled for this month to unlock the full production capacity potential within the country”, Caretaker Commerce Minister Gohar Ejaz said.
The closure of industries affects every stage of the value chain, including ginning, weaving, spinning, processing, and clothing production. Additionally, he added, there are cases where certain industries operate with lower production levels.
Mr Ejaz further said that approximately 20pc of the overall installed capacity in the textile and clothing sector was impacted over the past 16 months.
According to Mr. Ejaz, who ascribed this gain to the beneficial effects of the caretaker government’s policies, overall exports increased by 14.27 percent in August compared to July, indicating a resurgence in the nation’s export industry.
He declared that Rs31 billion will be directly transferred to exporters’ accounts by the Federal Board of Revenue. The minister stated that this will be quickly followed by a second refund payment to exporters, which will help to some extent alleviate their working cash problems.
