Abstract:
The cotton industry ofPakistan is the most emerging sector ofPakistan. It’s the largest
industry ofPakistan that generates export. The aim ofstudy is to identify the relationship
using empirical analysis between factors that affect growth of cotton industry i.e., interest
rate, inflation, energy crises during the year 1981 to 2020.
The depending variable in analysis is Growth and independent variable is interest rate,
inflation, energy crises, price of cotton yarn and loan disbursed. All the data has been collected
from secondary sources. The data collected is from world development indicator 1981 to 2020.
The quantitative data examined by using econometric models with the help of EViews
software. The study shows that high cost of production resulting from high interest rate,
inflation, electricity crises has been the basic source of barriers to growth of cotton industry.
Lack ofgovernmental support and in availability ofindustrial actual data act as major limitation
ofthe study. Furthermore, other dimension must be undertaken for further studies.
