The Cotton Brokers Forum Association (CBFA) has criticized the new five-year Textile Policy (2009-14) saying that it has no incentive to increase the production and future trading of cotton, however, it appreciated the drawback of local taxes, refund of the past Research and Development (R&D) claims and monetisation of PTA.

Naseem Usman, a prominent cotton consultant and Chairman of Cotton Brokers Forum Association, said that cotton is used as raw material for the textile industry and the country would not be able to achieve the export target of $25 billion without increasing the cotton production and trading. He explained that as per the new policy the cotton crop would be standardized and made contamination-free; how it could be possible when the policy has no incentive to offer to enhance the production of the crop?

He said that in the absence of certified seed and government's failure to introduce Bt Cotton for last five years, Pakistan's cotton production in 2008- 09 witnessed a shortfall of 2.8 million bales but the new policy is still ambiguous over the introduction of Bt Cotton.

He urged the government to allow early cultivation of Bt cotton to meet the required target taking strict action against the use of old seed, which is vulnerable to virus. He also appreciated the key initiatives taken for creation of Textile Investment Support Fund (TISF); Technology Up-gradation Fund (TUF); Infrastructure Development; Skill Development; Zero Rating of Exports; Tax free import of machinery and rationalization of tariff structure.

In the new textile policy it is proposed that one bale of cotton will be converted to add value to the textile production. Pakistan converts one bale of cotton into $1000 whereas our competitors earn about $4000 per bale of cotton when converted to textile goods of high value. It required that Pakistan textile's value added goods quality should be improved to compete with regional competitors. If government wants high price of their value added fabrics then Pakistani cotton must be free of contamination and of good quality.

Usmani said that the textile policy is optimistic but proper implementation is doubtful but if implemented properly the result will be achieved otherwise like other government policies this will not achieve the laid down objectives.