Pakistan is likely to have a new textile policy by end of November. The salient features include support to small and medium enterprises in the textile sector, initiatives for growing better cotton, long-term financing and duty drawback of local taxes and levies.
Small and medium enterprises which usually work on value addition will get financing. A business-to-business portal may be launched for them soon. These enterprises will also get to open electronic letters of credit. New technology will be introduced in the weaving and spinning sectors. A fiber development centre will be opened.
The government is working on introducing new generation of BT cotton seeds in Pakistan to increase yields. World BT cotton seeds developers may be allowed to sell moderate seeds in Pakistan. At present, farmers are producing 1,000 to 1,300 kg of cotton per acre, which is very much low as compared to Australia and the US.
The Pakistan Cotton Standard Institute has been restructured to enable it to play an important role in improving quality and reducing contamination levels of cotton. The Trading Corporation of Pakistan has been intervening in the market and procuring cotton bales directly from ginners. It is felt such a step would reap profits for ginners but not for growers. It’s feared it will create distortions in the market and render the downstream industries uncompetitive and cause losses to the government.
