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Challenges Faced by Textile Industry of Pakistan: Suggested Solutions


  • 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.

Suggested Citation

  • Walayat Shah & Usman Ali Warraich & Abdul Kabeer Kazi, 2012. "Challenges Faced by Textile Industry of Pakistan: Suggested Solutions," KASBIT Business Journals, Khadim Ali Shah Bukhari Institute of Technology (KASBIT), vol. 5, pages 33-39, December.
  • Handle: RePEc:ksb:journl:v:5:y:2012:p:33-39

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    References listed on IDEAS

    1. Golob, Thomas F. & Regan, Amelia C., 2000. "Freight industry attitudes towards policies to reduce congestion," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 36(1), pages 55-77, March.
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    3. Golob, Thomas F. & Regan, Amelia C., 2003. "Traffic congestion and trucking managers' use of automated routing and scheduling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 39(1), pages 61-78, January.
    4. Hau, Timothy D., 1992. "Economic fundamentals of road pricing : a diagrammatic analysis," Policy Research Working Paper Series 1070, The World Bank.
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    More about this item


    Textile challenges; Shortfall production; Workforce; Marketing; Revenue; Pakistan;

    JEL classification:

    • L6 - Industrial Organization - - Industry Studies: Manufacturing
    • L67 - Industrial Organization - - Industry Studies: Manufacturing - - - Other Consumer Nondurables: Clothing, Textiles, Shoes, and Leather Goods; Household Goods; Sports Equipment
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population


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