Newly elected APTMA Chairman targets $3bn increase in exports

KARACHI: Newly elected Chairman of the All Pakistan Textile Mills Association (APTMA) Asad Shafi has set out an ambitious agenda to increase Pakistan’s textile exports, saying the industry has the potential to generate an additional $3 billion in exports during the current year and raise exports by $10 billion over the next two to three years through new investment and a competitive business environment.

In a statement issued after assuming charge as APTMA chairman, Shafi said his foremost priority would be to work with the government and industry to expand value-added exports, investment and employment.

He said Pakistan was among the few countries possessing a complete textile value chain, covering everything from fibre and spinning to weaving, processing, finishing, garments, apparel and home textiles.

According to Shafi, APTMA would focus on leveraging this integrated domestic supply chain to produce and export increasingly value-added finished products.

“The greater the share of domestic inputs and processes that goes into our exports, the greater the value retained within Pakistan in the form of employment, investment, industrial activity and foreign exchange,” he said.

The APTMA chairman noted that Pakistan had already made considerable progress in expanding value-added textile exports, with more than 80% of textile exports comprising value-added consumer products, including apparel and home textiles.

However, he said the next opportunity was to move beyond manufacturing and capture a greater share of the value generated after products leave the factory.

Shafi pointed out that manufacturing typically accounts for less than 30% of the final retail value of apparel, while significant value is generated through product development, design, branding, marketing and retail.

He said Pakistan therefore needed to build stronger links between manufacturers and brands, help existing Pakistani brands expand internationally and enable manufacturers to establish their own brands and retail channels.

“Pakistan must not only manufacture a product; we should increasingly design it, brand it, market it and sell it internationally as well,” Shafi said.

He added that developing stronger links between manufacturing, branding and international retail would be one of APTMA’s key priorities during his tenure.

In line with this objective, APTMA is also broadening its membership beyond spinners, weavers and value-added manufacturers to include major Pakistani textile and apparel brands and retailers, bringing different segments of the value chain onto a common platform.

Shafi urged the government to facilitate the transition by easing foreign exchange and regulatory restrictions that limit investment in overseas warehousing, distribution, marketing and retail operations.

He also called for an enabling framework for e-commerce and retail-oriented shipments from Pakistan, saying such measures could help Pakistani companies establish a stronger presence in international markets.

The APTMA chairman stressed that increasing exports would require a reduction in the fundamental cost of doing business. He called for industrial electricity at 7 cents per kWh, gas at $7 per MMBtu and financing at 7% per annum, saying these costs were necessary for Pakistan to compete with regional economies.

He also demanded restoration of DLTL (Drawback of Local Taxes and Levies) support for exporters and immediate measures to improve exporters’ liquidity, particularly through faster payment of outstanding sales tax, income tax and other government refunds.

Shafi said Pakistan did not need to build its textile export industry from scratch, as the country already had decades of manufacturing expertise, a skilled workforce, established relationships with international buyers and significant installed capacity across the textile value chain.

“Pakistani companies are already producing sophisticated products for some of the world’s most demanding brands and markets,” he said, adding that the immediate opportunity was to utilise the existing industrial base more effectively.

According to Shafi, competitive energy and financing costs, adequate liquidity and a policy environment that encourages investment and international expansion could allow the industry to increase exports substantially from existing capacity in the near term while attracting investment for the next phase of growth.

He said APTMA would work closely with the government during his tenure to develop a practical roadmap for increasing exports, strengthening every segment of the domestic textile value chain, attracting new investment and establishing Pakistani textile manufacturers and brands as a stronger presence in global markets.