Pakistan'S National Bank Asks The Government To Revise The R & D Investment Policy Of The Textile Industry

Dr Shamshad Akhtar, governor of the State Bank of Pakistan, informed the cabinet Economic Cooperation Committee (ECC) that the government provided billions of rupees for the textile industry to protect the inefficient textile industry, but the textile industry had abused research and development funds, and the governor of the bank asked the government to revise the investment policy.

In an interview with Fiber2fashion in India media, Mr Athar Ahmed, chairman of the Pakistan Federation of industry and commerce, said that when reporting to ECC on the first 9 months of the textile industry performance this year, he said that by April 15th, the government had provided R & D costs of 40 billion rupees for the textile industry to help textile industry compete in the international market and increase the proportion of its exports.

However, the performance of the textile industry during this period has been very low.

Ms Shamshad submitted export data from the Federal Statistical Office (FBS), showing that textile exports showed a negative growth of 3%.

The report shows that textile exports in Pakistan decreased by 3.14% in the first 9 months, from 8 billion 17 million US dollars in the same period last year to US $7 billion 765 million.

The sharp decline in textile exports has led to serious problems in the balance of trade payments. Traditionally, the contribution rate of textile industry to total exports is about 67%.

Previously, the textile industry enjoyed export rebates and rebates.

However, the tax rebate policy stopped in 2006 to 07, because some inefficient textile enterprises abused the tax rebate tools and obtained huge false tax rebates.

ECC listened carefully to the opinions of the president of the state bank and asked the Ministry of finance to formulate other measures to help the textile industry to enhance its competitiveness in the international market.

The performance of the textile industry has been put on a big question mark.

Although the government has provided huge financial subsidies in different forms for many years, the textile industry has still not changed.

The export proportion of the textile industry has been declining, and many special package support policies provided by the government have been wasted.