As the Pakistan government has promised help boost production and exports at reduced prices, the country’s textile industry has suspended its several month long agitation for solid business demands.

Three out of the eight demands of the industry have been accepted by the government. However, the industry while welcoming this gesture announced that it will continue to agitate for the acceptance of the rest of the demands. The three accepted demands are: raising the regulatory customs duty on import of Indian cotton yarn and fabric-coarse cloth from the present five per cent to 25 percent. The government though, raised it only to 10 percent, effective from November 1. The second demand is provision of more and cheaper, long-term finance for the ginning and spinning sector, and the third demand is reduction in long-term financing and export financing (ERF) by one percent.

All Pakistan Textile Manufacturers Association (APTMA), the industry leader, stated that the textile industry is hopeful that the rest of the eight demands will soon be considered favourably and resolved by the government for the viability of the industry and increasing exports of the country.

Pro-business policies by the Prime Minister Nawaz Sharif and a team of his three negotiators conceded some of the demands. Ishaq Dar, Finance Minister said that they need more revenues and would have to enlarge their forex earnings rapidly to expand nationwide development work and repay foreign loans. However, the government has chosen to help the textile industry as it is the biggest labour employer and foreign exchange earner through exports, he added.