New APTMA chairman says Pakistan could add $3bn in textile exports this year with cheaper energy

Pakistan's textile industry could earn an additional $3 billion in exports this year and $10 billion more over the next two to three years if it gets a competitive and predictable business environment, the newly elected chairman of the All Pakistan Textile Mills Association (APTMA), Asad Shafi, said, Business Recorder reported on 2 October.

Shafi said more than 80% of Pakistan's textile exports now consist of value-added consumer products such as apparel and home textiles. He described Pakistan as one of the few countries with a complete value chain from fibre to fashion, covering spinning, weaving, processing, garments and home textiles.

The next step, he said, is to capture more of the value created after goods leave the factory, since manufacturing typically accounts for less than 30% of an apparel item's final retail value. APTMA is widening its membership to include major Pakistani textile and apparel brands and retailers, and Shafi urged the government to ease foreign-exchange and regulatory restrictions on investment in overseas warehousing, distribution and retail.

"Pakistan must therefore build on its manufacturing strength by developing stronger linkages between its manufacturers and brands," Shafi said.

He said growth depends on costs matching those of competing economies, calling for industrial electricity at 7 US cents per kilowatt-hour, gas at $7 per million British thermal units and financing at 7% a year. He also asked for the restoration of the Duty Drawback of Local Taxes and Levies (DLTL) scheme and quick payment of pending tax refunds.

What it means for Egyptian exporters

Pakistan is a direct rival to Egypt in home textiles and cotton apparel for EU and US buyers. Its industry says it can lift exports quickly from existing capacity if energy and finance costs fall, so any government relief in Islamabad would sharpen price competition. Egyptian exporters should follow Pakistan's energy tariff and export-rebate decisions, and note its push to move from contract manufacturing into brands and overseas retail.