Role of Government

• Unpredictable, inconsistent, and non-inclusive Policies

Companies cannot take strategic decisions like expansion, investment, and procurement of the
machinery since these critically depend upon the predictability of policies. (e.g. subsidies on
different inputs of cotton crop which fluctuate prices)
• Raw Material
Poor quality (harvesting accumulate trash, absence of R&D (new and/or resistant varieties)
Country Cotton Yield (KG/HA)

1. Australia 1,923
2. China 1,879
3. Brazil 1,796
18. Pakistan 729
Role of Government
• Energy Issues
transmission, and supply issues (e.g; a 1-second breakdown in spinning stops work for 20 to 25
minutes and causes 10 to 15% production loss in weaving)

• Textile Policy
The government is formulating a Textile Policy 2021-25, which aims to increase textile exports 
from USD 13 billion to USD 25.3 billion by 2025 and USD 50 billion by 2030
To achieve these ambitious targets, government must promote the exports of high value-added
products such as knitwear or readymade garments.
The Legal Framework
• COMPLIANCE WITH LAWS, POLICIES AND PROCEDURES
Action and/or expenditure resulting in violation of any law, regulation, or corporate policy.
• INTEGRITY AND RESPECT FOR OTHERS
Directors/employees shall conduct their activities with the highest principles of integrity, truthfulness, objectivity, and honor.
• CONFIDENTIALITY
Directors/employees shall not use or disclose the Company’s trade secrets, proprietary information, or any other confidential
information gained in the performance of duty.
• INSIDER TRADING
It is illegal to purchase or sell securities of the Company if you have “material nonpublic information” concerning the
Company.
• WHISTLE BLOWING POLICY
The purpose of this policy is to provide a channel to raise concerns of any violations of legal or regulatory requirements,
incorrect or misrepresentation of any financial statements and reports, etc. without fear of punishment or unfair treatment.
The Legal Framework
• DEALING WITH VARIOUS STAKEHOLDERS
Every business unit or section of the Company shall follow policies and procedures which are
consistent with the Code while dealing with different stakeholders:
1. Customers
2. Employees
3. Suppliers of Goods and Services
4. Communities
5. Competitors
6. Governments and Regulators
Contribution to National Exchequer
The Company is contributing to the national growth by sharing its
revenues in the form of taxes, rates and duties and exports also
contribute towards improving foreign reserves. Contribution by the
Company was a total of Rs. 4,971 million in FY 2021 (FY 2020: 4,205
million) in various federal, provincial and local taxes, rates and duties.
Taxation
• In the budget 2019/2020, the government decided to eliminate zero-
rating scheme for textile sector and imposed normal 17 percent sales
tax on all supply of textile products, except for those subject to
exports.
• From July 01, 2019, the items listed in the said SRO (FBR issued
Circular) had been charged to sales tax at 17 percent at import and
local supply. However, in case of integrated retail outlets, sales tax on
finished textile and leather items were subject to 14 percent sales tax,
according to the circular.
Profit and Taxes during financial year 20-21
• Rupees (000s)
• Profit before tax 6,291,135
• Taxation 1,025,006
• Profit after tax 5,266,129