Importance Of Textile Industry In Pakistan

Textile sector’s contribution in Pakistan Economy

 Textile sector is contributing almost 8.5% of total GDP in Pakistan.

 This sector is provides 40% of total labor force.

 A large amount of taxes collecting through textile almost Rs 23.5 billion collected in year 2011-12.

 It’s playing a vital role in economic stability.

 This sector is promoting cotton production which is becoming a part of agriculture sector’s development.

 Textile industry is developing many small industries like colors, dies, and printing are equally affected by boom and bust of textile sector. Textile Sector’s Problems

 In current scenario, Pakistan is facing very serious electricity and gas crises due to this reason many industries has shut down and some

 Government policies are not sustainable, there is no long term planning.

 There is a rapid increase in cost of production due to many reasons like energy crises, inflation and old machinery.

 Lack of research institutes and modern equipment is one of the biggest problems of textile sector. There is no research and development center build up since a long time period, to survive in international market we have to make new research and development centers.

Remedies to solve Problems

 Government should solve the problem of energy crises and freeze the tariffs of gas and electricity for at least 3 years.

 Government should build new research and development institution and Development projects for Textile Sector.

 Government of Pakistan should establish maximum industrial cities and zones in which every facility should be provided to industrialists easily and at low rates.

 Governments of Pakistan should attract foreign investors by giving them maximum facilities to foreign investments like relaxation of tax for a few months or years.

 Government should adopt sustainable policies, policies for long

Trend of Textile Industry during 2001-2011

Year Growth in Percentage

2001-02 4.10

2002-03 5.20

2003-04 20

2004-05 24.5

2005-06 11.23

2006-07 8.40

2007-08 4.05

2008-09 -0.78

2009-10 -1.78

2010-11 1

This table is showing growth trend of textile sector 2001 to 2011. At the start of decade, textile industry was steadily growing and with high ratio in year 2003-2007. This sudden increase was due to massive availability of inputs. But it was decline after 2007 due to Benazir Bhutto’s death in Liaqat Bagh Ravalpindi, political instability and economic meltdown.

Textile Exports Trend (2012-2014)

According to the State Bank of Pakistan’s Statistics and Data Warehouse Departments, Export Receipt of Commodity revealed that Pakistan Textile Industry is the biggest Exporting industry of Pakistan.

Year Total Exports ($) Share of Textile($)

2012 24053144 13067839

2013 23693110 12832240

2014 24848045 13658696

Exports Table 2012

Commodity Exports($) Exports (%)

Food 3789373 16

Textile 13067836 54

Petroleum 1059369 5

Other Manufacturer 4631321 19

All Others 1505246 6

Total