Driving-Forces-that-are-forcing-to-change-the-textile-industry-of-Pakistan

Abstract
Pakistan's textile industry is one of the most important contributors to the overall growth and

development of the country's economy. It makes up a sizeable portion of the country's total

industrial exports. This industry has, over the course of many years, experienced both growth

and recession for a variety of reasons. The industry has been having trouble succeeding as a

result of high production costs, frequent power outages, ineffective strategies, and a lack of

support policies from the government. The sector is also faced with significant challenges in

terms of quality competence, global tension, and a worldwide recession. The textile industry also

faced with a variety of obstacles and opportunities in Pakistan, including decaying infrastructure,

severely obsolete equipment, a hazardous and disorderly environment, and a lack of investment.

All of these factors contribute to the industry's current state. The twisting sector, the chemical

processing sector, the ready-made fabric sector, the woven apparel sector, and the clothing and

garments sector are the primary subsectors that make up this sector. Regardless of the fact that

the majority of textile sales take place in industrialized nations that are not situated in South

Asia, the industry is still substantially behind its regional competitors in South Asia and has not

performed to its full potential.

 Table of Contents
Abstract............................................................................................................................................1
1. Introduction..................................................................................................................................3
1.1 Background............................................................................................................................3
2. Literature Review........................................................................................................................5
2.1 Performance Overview and Outlook of the Textile Sector of the Pakistan...........................7
3. Industry Analysis.........................................................................................................................8
3.1 Driving Forces in the Textile Industry of Pakistan................................................................8
Mills in Pakistan Attempt to Gain a Competitive Advantage..................................................8
The RGST will have an impact on the value-added textile business.......................................9
Maintaining a zero-rated status for all exports will be a priority.............................................9
Experiencing a Rise in Production Costs.................................................................................9
Difficulties with the Electricity..............................................................................................10
Strict Monetary Policy............................................................................................................10
The United States and the European Union have reduced their purchases of textiles from
Pakistan..................................................................................................................................10
The Cost of Raw Materials.....................................................................................................11
Impact of Inflation..................................................................................................................11
4. Analysis and Discussion............................................................................................................11
4.1 The Rise and fall of Textile Sector in Pakistan....................................................................11
4.2 Reason for the rise and fall of Textile Sector.......................................................................12
4.4 Challenges and Opportunities of the Textile Sector of Pakistan.........................................13
4.5 Analysis of Textile Policy 2020-2025.................................................................................15
Policy Vision..........................................................................................................................16
Strategic Objectives................................................................................................................16
Critical Appraisal of Textile Policies.....................................................................................17
5. Conclusion and Recommendations............................................................................................19
References......................................................................................................................................21
1. Introduction

1.1 Background

The core operations of a textile company are the

creation of designs, the manufacturing of yarn,

fabric, and clothing, and the distribution of these

products to customers. The raw material can be

something that occurs naturally, or it might be

something that's created using components that

come from the chemical industry. One of the

key businesses that profited tremendously from the improvements brought about by the

Industrial Revolution was the textile sector. The production of cloth and clothing was the

foundation upon which the textile industry was built. In the years leading up to the start of the

Industrial Revolution in the 1700s, manufacture of commodities was carried out on a much more

modest scale. This changed when the Industrial Revolution began. The term "cottage industry" is

what historians use to refer to this type of production method. At this point in history, cottage

industry refers to small-scale, home-based businesses that create things for sale. This economic

model required people to manufacture commodities, such as wool, in their houses or on their

own farms, and then sell those items to the communities that were geographically close to them.

This was possible because travel over vast distances was unusual during this time period. This

method of production was glitchy and ineffective, and it was difficult for it to keep up with the

rising demand that was brought on by the growing population. Industrialization, on the other

hand, made it possible for goods to be manufactured in a centralized location and on a large
scale. In addition to this, it resulted in the development of innovations that sped up the

production process for a variety of different goods, most notably in the textile industry.

During the course of the 1700s, a number of innovators, including Richard Arkwright, Eli

Whitney, James Hargreaves, John Kay, and Edmund Cartwright, invented machinery and

methods that aided in the improvement of production, particularly in the field of textile

manufacturing. For instance, in the year 1733, John Kay invented a wheel shuttle, which was

subsequently renamed a flying shuttle. The fact that the machine required only one person to run

it allowed for increased productivity during the weaving process while simultaneously lowering

the amount of labor required. In the year 1764, James Hargreaves designed the spinning jenny,

which allowed several thread spindles to be spun simultaneously on a single machine. This was

further developed by Richard Arkwright came up with the idea for the water frame in the year

1769. Because the water frame was so big and required so much energy, he built it next to rivers

and streams so that he could utilize the power of the water to spin the machine. This enabled him

to spin more than one hundred spindles of thread at the same time. Edmund Cartwright, on the

other hand, introduced the power loom in 1785, that enabled for the speedier manufacture of

textile. In 1793, an American inventor named Eli Whitney built the cotton gin, which allowed for

the manufacture of cotton to proceed at a faster rate. Historically, cotton had to be washed by

hand in order to remove its seeds and fibers. The cotton gin invented by Whitney sped up this

process and made it possible to harvest the resource far more quickly. Overall, these inventions

contributed to the mechanization of the textile industry and led to the establishment of factories

throughout the entirety of Britain, the first nation to undergo industrialization.

2. Literature Review

Pakistan's manufacturing sector is led by the textile industry, which accounts for the country's

largest share. In terms of the overall value of textile exports, Pakistan holds the eighth place in

Asia. The textile sector in Pakistan contributes 8.5% of the nation's gross domestic product. In

addition to that, the industry is responsible for the employment of approximately 45 percent of

the country's entire labor force (and 38 percent of the manufacturing workers). Cotton is

Pakistan's primary agricultural export, and it is the world's fourth largest producer. In addition to

this, it has the third highest capacity for spinning in all of Asia, behind only China and India, and

its contribution to the total capacity for spinning across the globe is five percent. The production

of textiles is being carried out by 1,221 ginning units, 442 spinning units, 124 big spinning units,

and 425 small units.

The Indus Valley civilization, located in present Pakistan, is believed to have been the source of

Indian textiles, as its inhabitants wove clothes from hand-spun cotton. Historically, the Indus

valley region engaged in substantial international trade. It is documented that silk from the

region was popular in Rome, Egypt, Britain, and Indonesia.

Pakistan's textile industry is divided up into six basic categories, which are as follows:

1. Spinning

2. Weaving

3. Processing

4. Printing

5. Garment manufacturing

6. Filament yarn manufacturing

Cotton production accounts for the majority of the overall textile industry. Synthetic fiber,

filament yarn, art silk, wool, and jute are some of the other types of fibers that are manufactured.

1. Cotton: The cotton spinning industry in Pakistan is comprised of 521 units that are both

installed and active. This industry is considered to be the most significant in the textile

industry.

2. Synthetic Fibers: Nylon, polyester, acrylic, and polyolefin are the types of synthetic

fibers that are the most widely available on the market today. This is true within the

category of synthetic fibers. There are now five significant producers of synthetic fiber in

Pakistan, with a combined capacity of 636,000 tons per year. 

3. Filament yarn: For all three types of filament yarn, Pakistan is the sole source of supply.

The three types of yarn seen here are acetate rayon, polyester filament, and nylon

filament. Six units are now in operation around the country.

4. Artificial Silk: This synthetic fiber was developed with the intention of replicating the

look of real silk at a reduced cost per unit of manufacture. It is estimated that there are

around 90,000 looms located throughout the country. The majority of these looms can be

found in Karachi, Faisalabad, Gujranwala, and Jalapur Jattan, with a few being located in

FATA.

5. Wool: Wool is used to make a variety of items, the most common of which are woolen

yarn and acrylic yarn, as well as textiles, shawls, blankets, and carpets.

6. Jute: Packaging materials made of natural fibers like hessian and jute are frequently

utilized for the transport and storage of agricultural goods like rice and grain. Jute is also

used to make rope. In the 2009–2010 fiscal year, the manufacturing of jute products came

in at roughly 100,000 tons.

2.1 Performance Overview and Outlook of the Textile Sector of the Pakistan

According to Azeem, Qamar, Azam, Saboor, and Khan (2017), the number of textile plants in

Pakistan was only three at the time of the country's establishment, but that number has since

increased to over six hundred. Pakistan is ranked number four in the world when it comes to

cotton production, and it is third when it comes to the amount of cotton that is used. As of 2017,

the textile industry's contribution to overall exports accounts for a significant 63 percent of total

exports. The textile industry is extremely reliant on the natural, unprocessed type of cotton that is

currently accessible, and any growth in the textile industry is viewed as being beneficial to the

restoration of the country's diminishing foreign exchange reserves. During the years 2009

through 2014, the industry received a total allocation of $2.3 billion; however, for the years 2015

through 2019, that total allocation was reduced to $640 million for no discernible reason.

In the year 2019, the textile sector was responsible for 57 percent of all exports, which amounted

to a total of 13.53 billion dollars out of a total of 25 billion dollars. As a consequence of this,

there will be three million job openings. The apparel business in Pakistan requires 15 million

bundles of cotton annually, while Pakistan only produces 10 million bundles of cotton annually.

In the subsequent five years, it is anticipated that this demand would increase even higher,

reaching approximately 20 million. According to Daily Times, the costs of energy supplied to the

textile sector are subsidized at Rs.10-11 per each consumed unit, which accounts for around 35

percent of manufacturing expenses (Imran, 2019).

The present administration has big goals, one of which is to increase exports to the extent of $30

billion through increasing financing and the number of jobs available. They want to increase the

amount of cotton produced per hectare from 660 kilograms to 1200 kg. At this time,

approximately $1.1 billion worth of foreign exchange reserves are being utilized so that 3.5
million bundles of cotton may be transported. The garment industry will be able to produce an

additional $3 billion in revenue as a result of an increase in cotton production to 20 million

bundles, which will also permit an expansion of textile exports by 10 to 15 percent and thus

triple the country's foreign exchange reserves.

3. Industry Analysis

The major internal factors, microenvironment (such as knowledge competencies workforce of

management), and macro environment (such as economy rivalry technology) are the driving

forces that define the future of the organization. The participants in an industry are responsible

for the driving forces that produce change in that industry. Driving forces are the primary driver

of change in industries and competitive conditions. Driving forces can originate from either the

internal or the external environment.

3.1 Driving Forces in the Textile Industry of Pakistan

Other factors that are driving the textile industry:

Mills in Pakistan Attempt to Gain a Competitive Advantage

During the past few years, Pakistan's cotton and textile industries have invested more than $6

billion in production and technology upgrades in order to adjust to changes in the global cotton

trading market. As a result of this, Pakistan's domestic consumption has increased to a level that

is around 3 million bales higher than output. However, despite rising levels of consumer

spending, Pakistan's textile sector is challenged by a number of internal and external problems

that diminish its ability to compete effectively in international trade.

The RGST will have an impact on the value-added textile business.

It was called upon the government not to impose the RGST because it was going to drive the

export-oriented and labor-intensive Textile Value Added Textile Sector right up against the wall.

The RGST law was more complicated than the GST that is already in effect.

In addition, the government was keeping millions of dollars that belonged to exporters in the

form of an export rebate, which was approximately 1 percent at the time. It is currently unlikely

that the FBR will be able to distribute 15 percent of GST refunds in a smooth manner given the

current state of its operations. Textile exporter or business would resort to bank for financing its

export in order to meet this shortage in working capital. This is because the markup rate itself is

on the rise in line with the rise in working capital. Therefore, the Value-Added Textile Sector

will eventually fail, which will result in a shortage of resources and steadily increasing costs for

gas, electricity, and other essential raw materials.

Maintaining a zero-rated status for all exports will be a priority

The zero-rating regime was suspended in 2013, and exporters have since been facing a severe

shortage of liquidity as a result. However, there was no provision made for an expedited return

scheme. The zero rating system was reinstated in 2016, however it was discontinued once more

in 2019. In a similar vein, in addition to refunds for sales tax, refunds for customs duty drawback

and refunds for withholding tax were also not paid on time.

Experiencing a Rise in Production Costs

As a result of rising production costs, Pakistan's textile sector is having trouble competing

successfully in global markets. These challenges are largely attributable to Pakistan's rising labor

costs. The rise in the cost of manufacturing can be attributed to a number of factors, including

the interest rate, inflation, and the persistent decline of the value of the Pakistani rupee.
Difficulties with the Electricity

As a direct result of load-shedding, the capacity of numerous sub-sectors to produce textiles has

been cut by as much as 30 percent. Electricity production declined significantly as a direct result

of load-shedding, which also had the effect of lowering export orders. The immediate increase in

the price of electricity contributed to an increase in production costs as well. As a result of load

shedding, some mill owners have had to resort to using alternative sources of energy, such as

generators, which has driven up their production costs. The competence of this sector to compete

effectively in international markets was severely damaged as a result of the tragic scenario.

Strict Monetary Policy 

The high cost of production can be attributed to the restrictive monetary policy. Because of the

high interest rate, there is an increase in the cost of financing, which has a negative impact on

productivity. A further factor that has a negative impact on production is the withholding tax of

1%. The significant rise in the rate of interest is to blame for the intensive growth in the cost of

conducting business, which in turn has worsened the challenges faced by the sector. 

The United States and the European Union have reduced their purchases of textiles from

Pakistan.

The United States of America has discontinued more than fifty percent of Pakistan's textile

orders. The United States imposes substantial charges on the import of textiles from Pakistan,

which has a negative impact on the country's export industry. Following the imposition of a

restriction on the import of Pakistani textile goods, there has been a significant shift in the

quantity of textiles exported from Pakistan. The United States and the European Union are the

primary markets for Pakistani textiles.

The Cost of Raw Materials

Cotton and other types of raw materials that are utilized in the textile industry are subject to

significant price fluctuations in Pakistan. The sharp increase in the cost of raw materials has an

adverse impact on the overall manufacturing cost. The double-digit inflation rate and unstable

internal state of Pakistan both contribute to the quick and unpredictable growth in the pricing of

raw materials. As a consequence of an increase in the cost of manufacturing, demand both

domestically and internationally fell, which led to a reduction in the size of the company as a

whole. As a result, the number of people without jobs will also rise.

Impact of Inflation

The rate of inflation is determined by the percentage change in the consumer price index (CPI).

A widespread increase in prices over time is what economists mean when they talk about

inflation. It is a decrease in the value of money relative to other goods. The effects of inflation on

the economy can be detrimental. Inflation has a significant impact on Pakistan. Inflation rates

still fluctuate in the upper double digits. The rise in inflation is the root cause of the rise in the

cost of manufacturing of textile goods, which in turn causes a reduction in workforce size. The

double-digit inflation leads to a decrease in the amount of textile that is exported.

4. Analysis and Discussion

4.1 The Rise and fall of Textile Sector in Pakistan

Latif and Javid (2016) cited WTO (World Trade Organization) statistics that provided

information on textile exports from 2001 to 2014. Ahmed (2011) released data from the

Economic Survey of Pakistan, published by the State Bank of Pakistan, describing the year-on-

year growth rate from 2002 to 2011. According to the Express Tribune Statistics, textile exports

increased from 2015 to 2017. Khan and Khan (2010) provided Pakistan's textile exports for the
year 2000. According to The Business Recorder, Shah (2012) presented statistics regarding

Pakistan's textile exports in 1999.

According to Business Recorder, Fayyaz (2019) reported a small increase in the textile sector in

2018. Ahmed, Asif, Ali, Tariq, and Khan (2016) presented data on Pakistan's textile exports in

1999, as seen in the table below.

Year Textile Exports in US$ million % Growth or Decline (Year on Year)

1999 5,200 4.4%
2000 5,577 7.25%
2001 6,661 19.43%
2002 7,018 4.10%
2003 8,521 5.20%
2004 9,151 20%
2005 10,691 24.50%
2006 11,376 11.23%
2007 11,177 8.40%
2008 11,092 4.05%
2009 9,867 -0.70%
2010 11,778 -1.78%
2011 13,632 1%
2012 12,919 -5.23%
2013 13,890 7.51%
2014 14,068 1.28%
2015 13,470 -4.25%
2016 12,440 -7.64%
2017 12,450 0.04%
2018 13,553 0.17%
2019 10,880 -9.47%
Figure 1. Textile export of Pakistan for the past 20 Years

4.2 Reason for the rise and fall of Textile Sector

Aslam (2019) outlined a number of factors that contributed to the demise of the textile industry.

The industry's financing ratio has been severely impacted by factors such as rising commodity

costs and lofty bank borrowing rates. Despite the rupee's 34% depreciation over the course of

2018-2019, it is possible that textile exports will recover and gain momentum. In addition, the

political leadership owes PKR 400 billion to merchants, who are having difficulty converting
their investments into cash, which is contributing to the current repayment issue. This is causing

the crisis. According to Custom News Pakistan, the difference between a note of hand and the

requirements to return vending levy amounts to Rs.80 billion.

The quota allocation exception has not been successfully utilized by Pakistan's textile sector.

Following the action that was taken by the government of Pakistan to remove duties, the focus in

Pakistan's textile industry turned away from the previous direction. But the productivity of the

textile sector has remained erratic over the years as a result of factors such as the high cost of

unprocessed materials such as raw cotton, increased competition on a global scale, and

alterations in the trade rules of countries to which textile commodities were exported (Ahmad &

Kalim, 2014).

4.4 Challenges and Opportunities of the Textile Sector of Pakistan

In Pakistan's textile sector, there are obstacles to overcome as well as potential possibilities. One

of the challenges is that there is insufficient automation and technical advancement, and another

is that there is an insufficient supply of threads and wools of an adequate standard. There are

9084 machines capable of weaving fabric in factories, however only 6384 of those machines are

actually being used. The ready-to-wear apparel market is a significant sub-segment of the overall

textile industry. This sector has a great amount of attraction and potential on the domestic market

as well as on the international market. The other sector that has a substantial amount of

importance is the premium grade industry. This sector is responsible for 35 percent of all textiles

that are shipped to foreign countries.

Recently, the industry has been confronted with a number of problems, such as power outages,

fuel shortages, unpredictable fluctuations in thread prices, a worsening law and order situation, a

depreciating rupee, a lack of centers for innovation and improvement of products and processes,
a severe lack of modern equipment and appliances, and high manufacturing costs. These

problems have caused the industry to experience a number of setbacks. The ruling regime and

the primary textile controlling agencies are responsible for putting into operation the appropriate

measures, programs, and plans of action. In order to make up for these shortcomings, the textile

sector need to be eligible for refunds and subsidies. Additionally, the sector's resuscitation and

recovery may benefit from relatively low-cost energy and power for a limited time (Shah,

Waraich, & Kabeer, 2012).

"Textile Industry of Pakistan Current Challenges and Opportunities" (2019) reviewed that

Pakistan has been importing raw cotton from foreign markets for the past decade due to a lack of

domestic supply. Currently, Pakistan imports 3 million bundles of cotton while producing 11.5

million bundles domestically. In spite of the fact that the category of clothing and fabric is

considered to be the backbone of textile value-added products, Pakistan's contribution to global

export is just 1.10 percent, whereas Bangladesh's contribution is 7.66 percent. This setback is

due to the neglect of expensive objects. Pakistan was incapable of capitalizing on the global

trend of handcrafted filaments. In addition, Pakistan's textile export markets are insufficiently

diversified, with 88 percent of textile exports going to the European Union and the United States

alone. In terms of textile exports, Pakistan ranks seventeenth, and its share of the global market

in 2017 was only 1.10 percent ("Pakistan's Readymade Garments Sector: Challenges and

Opportunities," 2019).

As a result of changing weather patterns, such as rising temperatures, pollution, and global

warming, there is an opportunity for the textile industry to capitalize on, such as ensuring

viability and meeting global standards of customer protection and well-being, protecting textile

assets, and preserving textile assets. This will make it possible for the industry to improve and
continue to keep up with global benchmarks. Customers from other countries are particularly

sensitive to issues pertaining to the environment, the health and safety of employees, and policies

for corporate social responsibility. Therefore, the true development of the textile industry in

Pakistan is contingent on the automation of processes, as well as the employment of modern

technology and equipment, in conjunction with the fulfillment of environmental duties.

The textile industry is faced with a number of serious issues, two of the most prominent of which

are the abuse of authority by tax authorities and the imposition of excessive taxes. According to

what Alvi and Shahid (2016) noted, one of the other issues that the textile industry of Pakistan is

facing is the global economic crisis. Unproductive Human Resource policies, such as a lack of

worker mentoring and a focus on the development of workers' skills, are another challenge the

industry must overcome. Ineffective price negotiations for manufacturing inputs, downtimes

caused by shutdowns, intervention by the state, structural weaknesses in the tax system, and

legitimacy concerns are some of the additional obstacles that are faced (Khan, 2017).

4.5 Analysis of Textile Policy 2020-2025

Despite numerous trade barriers, it is remarkable that Pakistan's textiles and apparel industry has

persisted to explore new business opportunities and maintain a presence on global markets. As a

consequence of this, and in spite of the effects of the COVID-19 pandemic, the textiles and

clothing sector established a new high watermark for exports during the fiscal year 2020-21, and

the pattern of higher exports is expected to continue during the fiscal year 2021-22. Efforts have

been made to formulate the Textiles and Apparel Policy, 2020-25 by conducting an analysis of

the difficulties and obstacles faced by the industry in terms of industrialization and export within

the context of COVID-19, taking into consideration incorporating the incentives and assistance
offered by regional rivals to their business, as well as contributions from public and private

stakeholders.

As outlined in Textiles and Apparel Policy for the period of 2020 to 25, Textile and apparel

policy is a comprehensive reflection of interventions, plans, and support aimed at creating a

business environment that is conducive to global competitiveness and robust processes as well as

long-term viability through capacity building, marketing initiatives, revitalizing projects, and

consistent and predictable measures.

Policy Vision

To increase value-added exports and become one of the leading participants in the global textiles

and clothing supply chain by making full use of the potential offered by domestically grown

cotton, which will be supplemented by manmade fibers and filaments.

Strategic Objectives

a. To take full use of the textiles and clothing supply chain as a whole by promoting value

addition at each level of the production process, particularly in the final goods.

b. ln order to restore profitability for cotton farmers by raising yields, enhancing quality, and

lowering production costs

c. In order to improve the MMF industry and to make this chain more export focused.

d. To provide assistance for the whole chain of textiles and clothing, not just for BMR but also,

and more crucially, for new capacity.

e. In order to make production easier, a study of temporary importation schemes and the function

of regulatory bodies is being conducted.

f. In order to level the playing field, export competitiveness may be improved in this industry,

and its share of the domestic market can be increased.

g. SMEs should be given priority for initiatives relating to infrastructure, compliance, energy

efficiency, quality assurance, productivity, and e-commerce.

Critical Appraisal of Textile Policies

This policy is intended to remedy deficiencies in past policies, and the following multifaceted

strategy will be developed:

1. In the last three years, the current government has paid out Rs.121 billion in pending

liabilities incurred by previous governments, whereas the previous two governments only

paid out Rs.68 Billion.

2. A market-driven exchange rate is a significant factor in increasing exports and decreasing

imports.

3. Now under the Ministry of Commerce's jurisdiction, the National Tariff Policy aims to

streamline the tariff structure of the textile and apparel value chain.

4. Temporary importation schemes for re-exports will promote value-added exports and

provide employment possibilities to Pakistan's vast labor force, particularly women.

a. Simplifying the process and suggesting a bond-to-bond transfer in order to widen the

product base.

b. Value-added exporters benefit from the availability of raw materials at prices that are

competitive.

c. Diversification of the product offering.

d. Cotton accounts for just 27 percent of the overall fiber consumption in the world, thus

there is room for improvement in the fiber mix.

5. The drawback rates for customs duties will be altered.

6. Provide a consistent and long-term foreseen future while implementing the following

essential measures:

a. The provision of energy (Electricity and RLNG) at regionally competitive rates during

the policy years to textile industry export-oriented units/sectors.

b. Duty drawback system (DLTL/DDT) for value-added textile products exclusively,

such as technical textiles, clothes, manufactured goods, and carpets.

c. During FY 2021-22, the Long Term Financing Facility (LTFF) and Export Financing

Scheme (EFS) rates would remain at 5% and 3%, respectively. These rates would remain

in effect for the duration of the policy years; however, the SBP may review markup rates

in light of monetary policy and current economic conditions.

d. Included will be a review of the LTFF and the SME refinancing scheme, as well as

indirect exporters and construction costs (encompassing only the manufacturing field).

e. A fund for brand development and acquisition will be established.

7. Redevelopment of KGCC

8. A mass training program will be established, focusing on industrial stitching and mostly

targeting women.

9. There will be a reassessment of marketing strategy

10. The implementation phase of the world's first e-commerce legislation is currently

underway, allowing the textiles and apparel industry to capitalize on global economic

opportunities. Amazon has already begun enrolling Pakistani textile and clothing makers

and exporters.
5. Conclusion and Recommendations

It is beyond reasonable question that the primary reason the textile sector of Pakistan is

struggling is due to the concerned authorities in the government not taking the problem seriously

enough. This has the effect of preventing business owners from making additional expenditures

in further upgrading their operations and quality standards, as well as satisfying the increased

demand for accuracy among foreign importers. This has demotivated business owners to

undertake these types of investments.

The field of textile production in Pakistan has a lot of room for development and improvement in

a number of different areas. The high production costs, which are primarily driven by the high

prices of imported raw materials like cotton fibers, can be reduced by lowering levies and taxes

on raw materials and equipment and by relaxing business regulations.

In addition, having a solid supply value chain may make it much easier to have access to a wide

variety of production materials. Employees need to be given instruction in new skills, and they

should be encouraged to make advantage of available technological resources.

Buildings for the exploration, development, testing, and introduction into production of cutting-

edge items should be built. Micro-businesses should provide more funding for technology and

infrastructure, while raw materials should be available without interruption and loans should be

more readily available.

Improving processes and manufacturing operations by accrediting standards, enhancing

promotional campaigns, and producing distinctive identification marks. Provide funding for

improved material resources. The liquidity issue and the amount owing and stuck up should be
resolved by compensation, relief, or subsidies. Enhance the contribution of various textile

organizations to the sector's revitalization and development.

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