The government is all set to announce new textile policy prior to budget for the next financial year 2009-10. The draft of the textile policy is ready and would be put up before the Federal Cabinet soon for approval. The government has set the textile exports target $25 billion in the new policy for the next five years.

The government had received a number of recommendations, including zero rating on import of textile machinery, zero rating exports, tariff reduction, incessant energy supply to textile units. Issues relating to market access, quality products with timely delivery, single digit mark-up and special power tariffs for textile industry had also been recommended in the policy. It has been suggested that textile policy might include the issue like duty-free market access to the European Union and the United States.

The textile sector is the major contributor to the overall exports of the country and providing large number employment opportunities to the people but it is facing tough time at present as due to high interest rates and power shortage.

Due to high interest rates and prevailing energy crisis, the exports target of $11 billion, set for the current financial year, for textile sector is unlikely to be achieved.