Challenges Faced by Textile Industry of Pakistan: Suggested Solutions

Abstract

An attempt has been made to investigate the challenges faced by the textile industry of Pakistan. A specific objective is to find out the main reasons through qualitative study and suggest solutions for further progress. Pakistan is the largest manufacturer and exporter of textile goods and the total export earnings of the textile industry of Pakistan is about $ 13.8 Billion per year. The major market for 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 the 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 for the 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 in the development of the economy if challenges and barriers remove on time. Although several challenges are uncontrollable it can be resolved by well defined policies and procedures by government institutions and textile association bodies in Pakistan.

Keywords: Textile challenges, Shortfall production, Workforce, Marketing, Revenue, Pakistan

JEL Classification: L6; L67; P23