Government planning to enhance budget allocation for Textile Ministry-Texglobe

ISLAMABAD (June 09 2010): The government plans to enhance budget allocation for Textile Ministry by over 50 percent, under Federal Medium Term Budget Estimates (FMTBE) 2010-13, in a bid to sustain the growth of textile sector products, and make them competitive in the global market.

According to FMTBE estimates for service delivery (2010-13), Rs 305.74 million was allocated for fiscal year 2010-11, Rs 461 million is proposed to be allocated for 2011-12, and Rs 681.6 million for 2012-13. According to documents, for administration/management and co-ordination, the government allocated Rs 45.67 million for 2009-10, Rs 62.75 million for 2010-11, Rs 240.9 million proposed for 2011-12 and Rs 591.9 million for 2012-13.

To introduce and improve cotton standardisation systems, the government has estimated Rs 54.7 million for 2010-11, proposed Rs 58.52 million for 2011-12 and Rs 62.62 for 2012-13. To take suitable measures to improve competitiveness of textile industry, the government earmarked Rs 186.3 million for 2010-11, and proposed Rs 159.5 million for 2011-12 and Rs 24.8 million for 2012-13.

To improve competitiveness of Pakistan's textile products, the government has earmarked Rs 2 million for 2010-11, proposed Rs 2.1 million for 2011-12 and Rs 2.3 million for 2012-13. Secretary for Textile Ministry Waqar Masood told Business Recorder that the estimated allocations under FMTBE are achievable. These figures were finalised after deep consultation and discussion with the Finance Ministry.

He turned down the impression that the Textile Ministry is going to be handed over to provinces, after the implementation of 18th amendment. Waqar said that according to Part-2 of the legislation of industry, Textile Ministry is an industrial subject and comes under the Council of Common Interests. Therefore, it would remain with the federal government.

Textile sector in the present global scenario, post-quota regime, multi-fibre phase out program, high competitive market and world-wide growing demand is continuously demanding quality improvement of the entire chain of textiles. Under WTO post-quota scenario, Pakistan appears to have the potential of becoming a leading force in the world-wide cotton and textile market place.