The textile industry is Pakistan’s largest manufacturing industry, contributing to over 8% of the total GDP. Pakistan’s economy is dependent on exports to fund imports, pay debt commitments, stabilise the currency, and deal with the ongoing problem of the payment deficit. Similarly, with the COVID-19-related situation, Pakistan’s textile exports suffered greatly as a result of the pandemic’s disruption of the world’s supply chains. Along with the huge fall in worldwide demand for textile goods.
Finance Minister Supported Textile Sector
Finance Minister Ishaq Dar stated on Tuesday that the government is dedicated to giving the textile industry the highest amount of support to increase Pakistan’s export-led growth. In addition, they gave the appropriate authorities instructions to deal with and settle their issues regularly. Moreover, the delegation praised the minister of finance for his assistance and attention to their issues.
A Problem in Textile Industry
However, the team also informed the finance minister of the difficulties the textile sector is having with the cost and availability of gas and electricity, as well as with imports and exports. The main issue was a cash deficit caused by a delay in sales tax returns. Delays in raw material imports are mainly caused by LC opening issues and low energy prices in the area.
Role of Pakistan’s Economy
Pakistan’s economy is mostly supported by its textile sector. More than 60% of Pakistan’s overall exports, or around US $ 5.2 billion, come from the textile industry. A little over 46% of Pakistan’s overall output is contributed by the industry. This industry makes up 8.5% of the overall GDP.
Textile industry is an important part of Pakistan’s economy. Finance minister Ishaq Dar decided to support the textile industry to boost up their profit growth. In addition, the Pakistani Finance Ministry has taken several steps to assist the development of the textile industry, including offering financial incentives to invest in the field, lowering import taxes on machinery and equipment, and enhancing infrastructure to ease exports.
