For years, Pakistan’s Textile and Clothing Industry has been the main driver of the economy in terms of foreign currency earnings and jobs creation. The sector has been playing a significant role in providing employment and raising the standard of living of the people. Currently, it absorbs almost 40% of the total industrial workforce and contributes 62% towards exports. The textile sector contributes 8.5% to the GDP of Pakistan. However, things are getting a bit worse as the textile industry sector is losing its competitiveness at the international level due to a number of challenges. These challenges are not only at the domestic level but also at the global level.
We can’t deny the fact that our textile sector has become regionally uncompetitive. However, we can’t blame the inefficiency of the industry but the reality is that this is because of a non-conducive business environment.
The Downfall in Pakistan’s Textile Industry
So many factors are involved in the downfall of the textile industry including the lack of investment in upgrading technology and innovation in the textile industry. The productive capacity of the sector is stagnant and there is no progress as there is not enough investment in technology.
The high cost of doing business is also discouraging investors to invest in the textile industry of Pakistan as there is an abundance of taxes and regulatory procedures.
Factors that cause Downfall
Let us discuss the factors that are causing the downfall in the textile industry.