Challenges Faced by Textile Industry of Pakistan:
Suggested Solutions
Walayat Shah
Usman Ali Warraich
Kazi Kabeer
Abstract
Attempt has been made to investigate the challenges
faced by the textile industry of Pakistan. A specific
objective is to find out main reasons through
qualitative study and suggest solution for further
progress. Pakistan is largest manufacture and exporter
of textile goods and the total exports earnings of
textile industry of Pakistan is about $ 13.8 Billion per
year. The major markets of Pakistani textile goods is
United State and European markets and its exports are
about more than 63% of the total exports of the country
and contributes 8.5% of Gross Domestic Product (GDP).
This study reveals that the textile industry is the
backbone of the economy of Pakistan mainly this sector
is facing great challenges from last several years. The
main challenges are energy crises, fluctuating yarn
prices, shortage of gas supply and load shading, law and
order situation, devaluation of Pakistani currency, lack
of research and development (R&D) institutions, lack of
modern equipment and machinery and production cost. It
is recommended that the textile sector can play a vital
role for the development of the economy if challenges
and barriers remove on time. Although, several
challenges are uncontrollable but it can be resolved by
well define policies and procedures by government
institutions and textile association bodies in Pakistan.
JEL. Classification: L6; L67; P23.
Keywords: Textile challenges, Shortfall production, Workforce, Marketing, Revenue, Pakistan.
