The Federal Textile Advisor, Ikhtiar Baig, said that Pakistan is the 4th largest producer of cotton and has most modern and latest technology, best-trained manpower and skilled labour.

With the support of new Textile Policy, the industry would be facilitated with concessional financing, opening of warehouses and marketing offices abroad and market access, which the government is pursuing very effectively.

The government has issued relevant SROs weft 1st September 2009 for new duty drawback rates i.e. 1% on fabric, 2% on home textile, 3% on garments, 2.5% reduction in export refinance mark-up and 5% interest disbursement on long-term outstanding loans up to 31st August 2009. Moreover State Bank has recently introduced another scheme of concessional financing up to 3 years @ 6% + 2% = 8%, 5 years @ 6.5% + 2.5% = 9%, 7 years @ 7% + 3% = 10% for modernisation and up gradation of technology of plant and machinery of ginning sector in order to have quality cotton.

Dr Baig said the textile sector caters 55% of total exports and provides 38% jobs in the manufacturing sector. This is first time that substantial funds of Rs 40 billion for Textile Investment Support Fund (TISF) have been allocated in the budget and then the incentives in the Textile Policy are announced.