How to revamp textile

#revamp #textile

LAHORE: After the example of Vietnam and Bangladesh, Pakistan needs to immediately attract foreign investment in its textile sector, which has made foreign direct investment from China, Japan and South Korea (FD I got billions. In order to stay competitive, Pakistan will have to focus on the preparation of artificial textiles, finishing processes and value -added clothing.

China is moving its factories abroad due to rising expenses of labor and US prices, while Western brands try to diversify suppliers ahead of China. To benefit this shift, Pakistan should set up a special economic zone (SEZS) dedicated to textile, make duty -free import zone for textile raw materials, and foreign investors of garments and artificial fiber plants The establishment should be offered tax holidays (5-10 years). . Bangladesh’s Export Processing Zone (EPZs) successfully attracted global brands through similar policies. Instead of fully relying on Western markets, Pakistan should actively court Chinese, Korean and Turkish investors.

Pakistan can offer land and infrastructure privileges to attract Chinese textile firms that are looking for low -cost bases. Joint venture with South Korean firms – Artificial fiber manufacture leader – can help set up local polyester and technical textile plants. Similarly, Turkish textile firms should be encouraged to cooperate in high -end apparel exports.

Red tapes and bureaucratic barriers in the establishment of factories must be resolved by implementing effective one window solutions for foreign investors, as seen in Vietnam. Both the government and the industry stakeholders will have to actively market as a competitive textile center at the World Trade Expo, while also working to attract major brands to invest in the country’s textile ecosystem.

Strong trade diplomacy is essential to gaining better market access to the US and the European Union. Vietnam and Bangladesh have successfully discussed favorable trade deals that reduce their textile exports. On the contrary, Pakistan faces high duties on textile exports to the United States, making its product less competitive. Bangladesh enjoy duty -free access to the European Union and the UK under the status of its least developed country (LDC), while Vietnam’s Free Trade Agreement (FTA) with the European Union and this Its participation in the comprehensive and progressive agreement of Trans -Pacific Partnership (CPTPP -) has given its textile exports an important benefit of price.

Pakistan must discuss the Free Trade Agreement (FTA) with the United States, to improve its chances to address the concerns about the weak intellectual property rights (IPR). With the United States, Vietnam’s FTA helped expand its clothing sector rapidly – Pakistan needs similar revenue reduction in the US market.

Priorities Plus (GSP+) The Normal Scheme of the Agreement, which approves Pakistan duty -free access to the European Union, expires in 2027. To secure its renewal, Pakistan will have to demonstrate the commitment of labor rights, environmental standards and human rights. In addition, adding artificial textile and high -value clothing, it should have an extended duty -free access lob lobby.

Pakistan’s strategic location provides the opportunity to discuss better trade terms as a trade bridge between China, the Middle East and Europe. Cooperation with China’s Belt and Road Initiative (BRI) can help promote export routes for faster delivery. At the same time, Pakistan should look for priority trade agreements (PTA) to diversify export markets with the UK, Canada and ASEAN countries.

The textile industry in Pakistan relies more on low -cost raw materials such as cotton yarn and fabric, rather than focusing on the costumes made. High energy costs and outdated infrastructure further pursue production costs. To strengthen this sector, Pakistan must build a strong artificial fiber industry. Currently, 80 % of its garment exports are based on cotton, while global demand is moving towards polyester and artificial combination. Joint ventures with South Korean and Chinese firms can support the establishment of local polyester fiber production plants.

Our country has to provide stable and competitive price energy to textile manufacturers. Vietnam and Bangladesh offer subsidized electricity and gas to textile units.

Vietnam’s well -developed shipping infrastructure provides it with a competitive advantage. To increase export performance, Pakistan must produce dedicated textile export terminals in Karachi and Gwadar, streamline customs clearance, and digit export documents. If we implement these bold reforms, we can effectively compete with Vietnam, Bangladesh and India in the global textile market.