The Ministry of Commerce (MoC) has finalized the draft of a comprehensive five-year Textile and Apparel Policy for the period 2025-30, which has now been submitted for review by Pakistan’s Economic Coordination Committee (ECC). This policy aims to significantly increase the textile and apparel sector’s contribution to the national economy, with a specific focus on achieving export targets of up to USD 29.381 billion by the end of the 2029-30 fiscal year. The policy also aligns with the goals set by the National Export Development Board (NEDB), as part of the government’s broader initiative under the “Uraan Pakistan” program to promote “Made in Pakistan” exports.
According to sources within the Ministry of Commerce, before submitting the policy to the ECC, the final draft will undergo discussions at an inter-ministerial meeting to incorporate feedback and suggestions from other relevant ministries. The goal is to ensure that the policy is comprehensive and addresses the concerns of all stakeholders involved in the textile and apparel sectors.
Under the draft policy, the proposed export targets are ambitious yet achievable. For fiscal year 2025-26, the target stands at USD 19.370 billion, with annual increases that would push exports to USD 29.381 billion by FY 2029-30. This incremental growth is seen as essential to rejuvenate the country’s textile industry, which has long been one of the most significant contributors to Pakistan’s exports.
Despite the optimism surrounding the draft policy, industry stakeholders have expressed concerns that without addressing certain key issues and including more industry-specific recommendations, the policy might not fully achieve its intended impact. Some stakeholders have warned that the policy may remain a theoretical document unless practical concerns related to taxation, financing, and infrastructural challenges are properly tackled.
A primary objective of the policy is to enhance Pakistan’s competitiveness in the global textile market by focusing on the export of value-added products, such as technical textiles, apparel, and smart textiles, while ensuring maximum utilization of locally produced raw materials and intermediates. The policy also aims to attract export-led investments in high-value, high-tech projects that promote environmentally friendly manufacturing practices. This includes a focus on industrial de-carbonization, the circular economy, and the social responsibility of textile manufacturing.
Strategic interventions outlined in the policy include collaborations between the State Bank of Pakistan (SBP), EXIM Bank, and the Ministry of Commerce to redesign the Export Finance Scheme (EFS) for better targeting and utilization, with a focus on value-added sectors. Additionally, EXIM Bank will introduce targeted financing schemes at low interest rates to support investments in value-added products and ancillary industries, such as machinery, spare parts, and chemicals.
In terms of infrastructure, the policy also calls for efforts to modernize the energy supply for the textile industry. Power Division is tasked with ensuring regionally competitive tariffs for direct and indirect exporters, alongside measures to ensure uninterrupted power supply and reduce inefficiencies in transmission and distribution systems. The policy further suggests incentivizing the establishment of warehouses abroad for e-commerce entrants, aiming to expand the global reach of Pakistan’s textile exports.
Additionally, the policy includes a push for renewable energy solutions, with EXIM Bank and SBP set to re-launch financing schemes for renewable energy projects targeting micro, small, and medium enterprises (MSMEs) in the textile sector. The aim is to reduce the carbon footprint of the industry and minimize reliance on fossil fuels.
While the Ministry of Commerce has set ambitious targets for textile exports, it remains to be seen how well the final policy will address the concerns of stakeholders, especially given the challenges posed by the country’s ongoing engagement with the International Monetary Fund (IMF). Despite the hurdles, the policy’s strategic direction is expected to lay the groundwork for a more competitive and sustainable textile industry in Pakistan.
As the policy moves toward formal approval, industry experts remain hopeful that the measures outlined will not only enhance Pakistan’s textile exports but also improve the overall business environment for the sector. With proper implementation, the policy could serve as a cornerstone for the revitalization of Pakistan’s textile and apparel industry, contributing significantly to national economic growth.
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