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Challenges Faced by Textile Industry of Pakistan: Suggested Solutions

Listed author(s):
  • Walayat Shah

    (Indus University, Karachi)

  • Usman Ali Warraich


    (Indus University, Karachi)

  • Abdul Kabeer Kazi


    (Khadim Ali Shah Bukhari Institute of Technology, Karachi)

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.

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Article provided by Khadim Ali Shah Bukhari Institute of Technology (KASBIT) in its journal KASBIT Bussiness Journal.

Volume (Year): 5 (2012)
Issue (Month): (December)
Pages: 33-39

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Handle: RePEc:ksb:journl:v:5:y:2012:p:33-39
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