Karachi, Two Chinese companies have announced plans to set up textile plants in Pakistan, in a major boost to the country's textile industry, which accounts for about 50-60 per cent of total exports.
Rainbow Industries Ltd and Shaoxing Chemical Industry will jointly set up plants to produce raw materials for the textile industry, an official at the Special Investment Facilitation Council (SIFC) said.
The joint venture of two Chinese companies is expected to generate millions of dollars in investments, aimed at the production of affordable raw materials for local textile manufacturers.
The official said experts had estimated the export potential of the textile industry at $50 billion or more per year by 2030, and that the setting up of plants by Chinese companies would vitalize the industry and boost exports.
Exports of Pakistan textile group increased around 1.41 percent during the first 11 months (July-May) of the current fiscal year 2023-24. It stood at $15.241 billion, compared to $15.029 billion during the same period last year, according to the Pakistan Bureau of Statistics (PBS).
The SIFC official also said the government was working on plans to review power tariffs and other issues facing the textile export industry after it had announced a 10-year duty-free machinery import scheme and establishment of units. in special economic zones for foreign investors. .
Pakistan Textile Mills Association vice president Naveed Ahmed said they were in talks with the government to ensure that the industry runs smoothly and without interruptions.
“We contribute around 55 per cent of the total export earnings and have asked the government to reduce the interest rate from 19.5 per cent to 6-7 per cent and instead supply electricity at 8-9 cents per kilowatt-hour (kWh). of 14 cents and remove all unreasonable taxes on imports, exports and income to enable the industry to operate its manufacturing units properly," he said.
The official said the Pakistani textile industry received a significant boost with the organization of a two-day textile exhibition last month that attracted more than 300 exhibitors from countries such as China, Malaysia, Turkiye and Iran, bringing together key stakeholders of the industry and business leaders to discuss improvements in the sector.
Pakistan's textile industry reached an all-time high of exports worth $22.1 billion in 2022.
Pakistan remains Asia's eighth largest exporter of textile products, and 45 percent of the total workforce is associated with the country's manufacturing sector.
Rainbow Industries Ltd and Shaoxing Chemical Industry will jointly set up plants to produce raw materials for the textile industry, an official at the Special Investment Facilitation Council (SIFC) said.
The joint venture of two Chinese companies is expected to generate millions of dollars in investments, aimed at the production of affordable raw materials for local textile manufacturers.
The official said experts had estimated the export potential of the textile industry at $50 billion or more per year by 2030, and that the setting up of plants by Chinese companies would vitalize the industry and boost exports.
Exports of Pakistan textile group increased around 1.41 percent during the first 11 months (July-May) of the current fiscal year 2023-24. It stood at $15.241 billion, compared to $15.029 billion during the same period last year, according to the Pakistan Bureau of Statistics (PBS).
The SIFC official also said the government was working on plans to review power tariffs and other issues facing the textile export industry after it had announced a 10-year duty-free machinery import scheme and establishment of units. in special economic zones for foreign investors. .
Pakistan Textile Mills Association vice president Naveed Ahmed said they were in talks with the government to ensure that the industry runs smoothly and without interruptions.
“We contribute around 55 per cent of the total export earnings and have asked the government to reduce the interest rate from 19.5 per cent to 6-7 per cent and instead supply electricity at 8-9 cents per kilowatt-hour (kWh). of 14 cents and remove all unreasonable taxes on imports, exports and income to enable the industry to operate its manufacturing units properly," he said.
The official said the Pakistani textile industry received a significant boost with the organization of a two-day textile exhibition last month that attracted more than 300 exhibitors from countries such as China, Malaysia, Turkiye and Iran, bringing together key stakeholders of the industry and business leaders to discuss improvements in the sector.
Pakistan's textile industry reached an all-time high of exports worth $22.1 billion in 2022.
Pakistan remains Asia's eighth largest exporter of textile products, and 45 percent of the total workforce is associated with the country's manufacturing sector.
