ISLAMABAD, May 16: The private sector will invest over $2 billion in the textile sector during the next three years period, according to “Textile Vision 2005”, placed before the participants of the three-day Pakistan Development Forum (PDF) meeting ended recently.

The vision said there was a potential to achieve $13 billion textile exports by 2005-06, to rank Pakistan within top 10 in the world textile exports and rank within top 20 in world clothing exports.

The vision also informed the PDF meeting that approximately $1 billion has already been invested in the textile sector during 2002.

The textile industry targets consuming 15 million bales of cotton by 2006-07 as the free import and export regime in cotton has stabilised cotton prices and its availability despite variations in crop size. The consumption of long staple cotton would increase.

However, Pakistan textile industry is seeking a level-playing field for the farm sector. The government was asked to provide direct subsidy to farmers to ensure a fair return until subsidies are withdrawn by other countries. The government was asked to encourage such a policy that should help transition of textile industry to a value-added products. Present industry structure is unbalanced and required substantial investment in the organised garment sector to avail market access under post-quota period.

The enabling environment is required to streamline tax regime and collection mechanism. Utilities be made available to the industry at competitive rates and to ensure compatibility of local laws with social compliance under WTO. Likewise, the industry calls for fast track public-private interaction and business enabling environment to attract new investment by maintaining quality standards.

The structure of textile industry shows a presence of strong basic textiles which are being consumed more by the local industry than export for value addition. Exports of value added is increasing 27 per cent annually.

The industry seeks to increase the area for expansion in cotton sowing and to have comparatively better technology in basic textile than competitors. The industry believes that it has the potential to grow/expand (exportable surplus) but seeks more access due to quota phasing out and decline in basic industry in competitors countries. Availability of local cotton, and established basic textile industry were termed as strength of the industry.

Talking about the projected World Fibre Demand, polyester was termed as the future king of fibres and the use of non cotton fibres is projected to touch around 70 per cent from the present level of 60 per cent.