Pakistan should allow export incentives to textile industry on the lines allowed by India under its Technology Up-gradation Fund Scheme (TUFS). This has been suggested by Muzzammil Husain, Chairman of Towel Manufacturers' Association of Pakistan (TMAP) in the working paper prepared by him on "Export Oriented Units (EOUs) and SME Draft Rules" and forwarded to Trade Development Authority of Pakistan (TDAP) for consideration.

In Export Processing Zones, the new rules should create facilities for the investor, for creating job opportunities and for bringing new technology through the incentive like full repatriation of capital and profits, duty free imports of machinery, equipment and material and no sales tax on electricity and gas bills.

Further freedom may be allowed from national import restrictions, foreign exchange control regulations of Pakistan not applicable, defective goods/waste can be sold in domestic market after payment of applicable duties, maximum up to 3% of total value of export.

Production oriented labour laws to be solely regulated by the Authority and import of labour to be allowed because at the moment, as we face acute shortage of highly skilled labour (supervisors, production managers, etc). Besides the above incentives, following facilities need to be provided: one window service and simplified procedure, all infra-structural facilities like water, electricity, gas, and telephone, sub-contracting without limit on variety and quality needs to be allowed outside the zone as well as within the zone.