APTMA to Invest US$7 Billion in Garment Hubs?

  • The All Pakistan Textile Mills Association (APTMA) is reportedly to invest US$7bn in the country’s garment industry.
  • Its members are said to be prepared to invest in establishing 1,000 garment manufacturing plants in a move designed to boost annual production to 3bn pieces.

The All Pakistan Textile Mills Association (APTMA) says its members are ready to invest US$7 billion in establishing 1,000 garment manufacturing plants in the country.

Due to be developed near major textile producing cities such as Lahore, Sheikhupura, Faisalabad, Kasur, Multan, Sialkot, Rawalpindi, Karachi and Peshawar, the proposed plants will reportedly install 0.5m stitching machines in a move designed to boost annual production to 3 billion pieces.

According to a proposal presented by APTMA to the government departments concerned, Pakistan’s textile industry has witnessed dwindling investments over the last decade as prospective investors are reluctant to make new investment decisions due to the high cost of doing business, says The Express Tribune. As a result, the industry has lost technological advantage over its competitors.

In an article today (9 March), the publication claims the proposal said new investments dropped to Rs0.56bn in 2016-17 compared to Rs1bn in 2005-06.

It adds the proposal also claimed currently around 35% of the textile industry’s production capacity was “impaired”, which caused a loss of about $4.14 billion worth of potential exports.

Now, in return for its investment, APTMA members are reportedly demanding “corrective and conducive policy measures” from the departments concerned. They also call for a long-term policy which includes consistent energy prices across the country, the removal of Rs3.50 per kilowatt-hour surcharge on electricity tariffs along with extending the duty drawback scheme for five years, and drawbacks to be increased every year by 1% for garments (up to 12%) and made-ups (up to 10%) against realization of export proceeds.

The Express Tribune also said APTMA suggested that foreign brands should be encouraged to establish buying houses in commercial enclaves in major cities with rent-free space and if the brand fetched a minimum of $100m of exports per annum, the rent-free space should be extended for another two years.

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