Qudsia Bano

The government has proposed establishing a National Innovation and Technology Fund to promote industrial research, technological advancement, and modernization across Pakistan’s textile and apparel sector. The initiative forms part of the draft Textile and Apparel Policy 2025–30, which aims to enhance competitiveness through innovation, sustainable production, and development of advanced materials and technical textiles.

According to the draft policy available with Wealth Pakistan, the Export Development Fund (EDF) will allocate 10 percent of its annual collection to create the National Innovation and Technology Fund under the Ministry of Commerce. The fund will support export-oriented and industry-driven research projects undertaken jointly by academia and industry partners.

It will finance research in areas such as advanced materials, sustainable and alternative fibers, man-made-fiber-based apparel, and high-tech textile machinery. The policy notes that these projects will bridge Pakistan’s technology gap, promote value addition, and strengthen linkages between universities, research institutes, and manufacturers. The Ministry of Commerce will manage the fund and collaborate with academia, research institutions, and industry to align research with industrial priorities and export objectives.

The document highlights that Pakistan’s textile sector has historically lagged in innovation and technology adoption. Limited R&D infrastructure, inadequate funding, and weak university-industry collaboration have hindered competitiveness. The proposed fund seeks to overcome these gaps by financing commercializable projects that directly support industrial modernization.

The policy also emphasizes that innovation is critical for the transition toward sustainable and circular manufacturing. The fund will encourage the development of eco-friendly materials, energy-efficient technologies, and environmentally responsible production systems in line with global ESG standards.

In addition to research financing, the policy envisions capacity building within R&D institutions, enabling them to serve as technology partners for the textile industry. Universities and research centers will be supported to establish laboratories and innovation clusters focused on technical textiles, digital manufacturing, and product design.

The policy concludes that the establishment of the National Innovation and Technology Fund will play a central role in transforming Pakistan’s textile industry into a technology-driven, export-competitive, and sustainable sector capable of meeting global market demands.

Credit: INP-WealthPk