The contribution of textile industry in the economy of Pakistan and to what extent textile industry is affected by economic crisis

Abstract

This research investigates the contribution of textile industry in the economy of Pakistan and the factors which affects the Pakistan’s textile industry after the economic crisis. Cross sectional data was collected and analyzed by using graphical representation. Questionnaire and structured interviews were the basic tools for measuring the performance and the factors which affects the textile industry of Pakistan. It was revealed that the industry is in urgent need of financial and technological investments. However, according to recent official figures, the Pakistan textile industry contributes more than 60% to the country’s total exports, which amounts to 5.2 billion US dollars approx. The manufacturing sector contributes to around half of the total exports and textile sector contributes around 46% of the manufacturing sector’s contribution. The negative growth of 2.6 % declining from $ 16.4 billion last year to $ 16.0 billion in July-April 2008-09 shows that textile sector is greatly affected by economic crisis. The researchers also focused on the role that Textile industry performs and also the major risks that involve in operations of Textile industry. In the end some recommendations have been made that what actions should be taken to increases the productivity of textile sector and to increase efficiency of supply chain.