2. 1

3. Ministry of Textile Industry, Government of Pakistan
PRESENTATION ON “INVESTMENT IN TEXTILES AND GARMENTS INDUSTRY TO BOOST EXPORTS”
Ministry of Textile Industry, Government of Pakistan

4. Scheme of Presentation
Textiles Sector Overview
European Union-Generalized Systems of Preference Plus (GSP+) Scheme
Textiles Policy 3

5. Importance of Textiles Sector
Contribution to National Economy
Percent
(%)
Share in GDP 8
Share in industrial value added 23
Share in total exports 56
Share in industrial employment 40
Share in banking credit (manufacturing) 36 4

6. International standing of Pakistani Textiles
Production and Export
Percent
(%)
Rank
Cotton Production
9.5
4th
Cotton Consumption
10.0
3rd
Yarn Production
9.0
Yarn Export
26.0
2nd
Cloth Production
7.0
Cloth Export
14.0
Garment Export
1.0
20th
Total Textiles Export
2.0
15th 5

7. Textiles Exports
$ Billion 6

8. Pakistan’s Textile Exports
Rank in World
Country
Share in World
Pakistan's Share 1
USA
17.04%
2.95% 2
Germany
7.92%
1.73% 3
Japan
6.57%
0.30% 4
China
6.47%
5.13% 5
United Kingdom
4.94%
3.25% 6
France
4.45%
1.87% 7
China, Hong Kong SAR
4.08%
1.00% 8
Italy
3.92%
1.39% 9
Spain
2.75%
2.31% 10
Netherlands
2.15%
1.62% 11
Russian Federation
2.13%
1.22% 12
Canada
2.11%
1.47% 13
Belgium
1.93%
2.35% 14
Rep. of Korea
1.34% 15
Turkey
1.80%
2.58% 7

9. Global Export Dynamics
Trade Mix of Pakistan
Global Trade Mix 8

10. Untapped potential of textiles and garments vis-à-vis competing countries
$ Million
Sr. No.
Country 
Textiles
Garments
Total
% Share of Garments 1
China
   111,662
   186,607
   298,269 62 2
India
     18,340
     17,742
     36,082 49 3
Turkey
     12,522
     16,680
     29,202 57 4
Bangladesh
        2,361
     24,584
     26,945 91 5
Vietnam
        4,786
     19,544
     24,330 80 6
Pakistan
        9,077
        4,991
     14,068 33 9

11. Trend of Garment Exports in Pakistan US$. (Million)FY
Textiles
Garments
Total
% Share of Garments
9,809
4,078
13,887 29
8,857
3,608
12,465 28
9,192
3,841
13,033
9,518
4,202
13,720 30
8,959
4,517
13,476 33 10

12. GSP+ Scheme Duration of the Scheme:
GSP+ Coverage:
Annex IX of the EU Regulation 978/12 includes complete textiles and clothing value chain i.e. Harmonized commodity description and coding System (HS) chapters 50 to 60 under Section 11a and chapters 61 to 63 under Section 11b”
Duration of the Scheme:
The scheme shall apply until 31st December 2023 (Article 43-3)
Rules of Origin:
To benefit from the tariff preferences, the products for which the tariff preferences are claimed shall originate in a beneficiary country 11

13. Textiles Policy

14. Textiles Policy
Vision
To become a leading value-added textiles export country
Mission
To develop and implement a textiles policy which ensures consistency, predictability and transparency in Government actions and programmes, while building the reputation of Pakistan as a reliable source of high quality goods. 13

15. Contd.. Technology Up-gradation Fund (TUF) Support Scheme:
Technology Up-gradation Fund including SMEs will be extended for this Policy period as well
Drawback of Local Taxes
Draw-back for local taxes and levies to exporters of textile products on FOB values of their enhanced exports on an incremental basis if increased beyond 10% over previous Garments 4%, Made ups 2%; and Processed fabric 1%
Tariff on Machinery Imports
SRO 809 for duty free import of machinery has been extended till 2016
Long Term Financing Facility (LTFF) and Export Finance Scheme (EFS)
The Government has reduced interest rates of LTFF and EFS to 5% and 3.5% respectively 14

16. Contd..
Joint Venture
Comprehensive plan in consultation with BOI and trade association will be formulated to facilitate joint ventures
Strengthening of textile firms
Initiatives will be taken to strengthen the strategic and competitive capacities of textiles value chain and allied firms
Under performing units will be supported through management capacity building, BDS support, facilitating mergers and any other viable options
Electricity and Gas
The government will take measures to give priority to textile sector for availability of energy to fully utilize the GSP+ status. For this purpose, a joint committee of Ministries of Textile Industry, Petroleum & Natural Resources, Water & Power and Finance Division has been constituted to work out solutions
Associations will be facilitated to carry out energy audits 15

17. Contd.. Technical Textiles
Technical textile is an emerging area, the Government will develop a proper strategy and exclusive centre in fields of geo-tech, meditech and sportech will be established
KOICA has shown interest in establishing a technical textile center in National Textile University, Faisalabad of around $6million 16

18. Contd..
Allied Industry
Establishment of Textile machinery manufacturing, textiles dyes and chemicals and accessories would be facilitated
Viability studies for these sectors would be initiated and in light of these studies measures would be introduced 17

19. Garment Cities in Lahore, Faisalabad and Karachi18

20. Thank You
Contact Information:
Contact Person: Federal Secretary, Ministry of Textile Industry
Address: Ministry of Textile Industry, First Floor, Evacuee Trust Complex, Agha Khan Road, Sector F-5/1, Near Marriott Hotel, Islamabad, Pakistan
Phone: & 49
Fax: