KARACHI: The representatives of the textile sectors have praised the government for announcing the textile policy, which envisages $25 billion textile export in the next five years.

However, there were some voices disagreeing with the government and termed the said targed 'ambitious'.

By and large, the textile sector is happy over the textile policy as in a statement Chairman of Council of All Pakistan Textile Associations, Muhammad Zubair Motiwala appreciated the new policy.

President of Karachi Chamber of Commerce & Industry, Anjum Nisar, Central Chairman of Pakistan Hosiery Manufacturers' Association, Muhammad Jawed Bilwani and Chairman of All Pakistan Textile Processing Mills Association, Nisar Sheikhani also express their satisfaction over textile policy.

They were of the view that at least after 62 years, the largest sector, which contributes 60 percent of the foreign exchange earning, 42 percent of the employment has now finally received the Textile Policy which has set the target and direction for the next 5 years.

They were of the opinion that Textile Industry has all the potential to touch the target of $25 billion within next 5 years.

They particularly thanked the textile minister for resolving the long outstanding issue of the payment of remaining 60 percent of R&D (Research & Development) and for allocating Rs 5.4 billion for the purpose.

They appreciated reintroduction of duty drawback policy and for giving 1 percent to the exporter of processed fabric, 2 percent to home textile, 3 percent to garment and apparel and another 1 percent for the 15 percent better performance than last year.

They were all of the view that policy has touched almost all the issues pertaining to textile industry. Allocation of Rs 42 billion is a commendable move and they assured the minister that industry would do its level best to surpass the target.

When everyone was praising the textile policy, Bilal Mulla, a renowned name in textile business and Chairman of Federation of Pakistan Chambers of Commerce & Industry (FPCCI) standing committee of value-added textile products called the textile export target of $ 25 billion 'unrealistic'. He said that the projected $25 billion presented in textile policy is not achievable.

Bilal Mulla, also former Chairman Pakistan Readymade Garments Manufacturers and Exporters Associations (PRGMEA) said that the annual rate of growth of the sector was around 10 percent for the last 15 years. "But the textile policy envisions a target growth rate of 25 percent for the next 5 years, which is impossible."

He said: "Presently, textile exports are at the level of around $10 billion, and are showing a downward trend with each passing day, which implies that textile exports would further decline due to the economic slump".

Bilal Mulla said the drawback at 3 percent on garments, 2 percent on home textile and 1 percent on fabric is a step in the right direction and will impede the downward rally. Federation of Pakistan Chambers of Commerce and Industry also appreciated the textile policy 2009-14 providing incentives of export refinance at lower rates, relief on existing long-term loans, restructuring and reorganisation of the textile sector, drawback of local taxes, refund of past R&D claims and monetisation of PTA.

President FPCCI, Sultan Chawla, stressed the need for implementing the policy in letter and spirit to achieve the desired result.