Revitalizing the Pakistan Textile Industry: Strategies for Growth and Competitiveness

Abstract

This study examines the decline of Pakistan’s textile industry, which once contributed over 60 percent to the country’s total exports in the 1990s but has experienced a significant downturn in recent years. Key factors contributing to this decline include the global economic recession, internal security challenges, rising production costs due to energy crises, and the depreciation of the Pakistani rupee. Additionally, high inflation rates and financing costs have further exacerbated difficulties for the industry. To revitalize the textile sector and restore its growth trajectory, government intervention is essential. One critical measure involves providing subsidies to facilitate the acquisition of new machinery or upgrading existing equipment. Modernizing machinery and technology will enhance efficiency, reduce production costs, and improve overall productivity. Additionally, allocating resources to research and development (R&D) initiatives is vital for optimizing production processes and fostering innovation. Investment in R&D can enable the textile industry to remain competitive in both domestic and international markets. By implementing these strategic measures, the government can stimulate growth in the textile sector, create employment opportunities, and strengthen export competitiveness. Moreover, fostering a favorable investment climate and encouraging innovation will enhance the sector’s long-term sustainability. Ensuring stability in energy supply, streamlining regulatory processes, and improving financial accessibility for manufacturers can further support the industry’s revival. A comprehensive approach addressing these challenges will position Pakistan’s textile sector for resilience and long-term prosperity in an increasingly competitive global market.