Wednesday, September 11, 2019
Stagnant Performance of Textile Industry of Pakistan Essay
Stagnant Performance of Textile Industry of Pakistan - Essay Example Industry is even experiencing other issues that have taken place internally, the workforce is under trained and the productivity levels are lower, there is a lack of leadership within the industry, the industry has failed to differentiate and add value. Other internal issues that are hurting the industry very badly includes high rate of inflation, low rate of production of power and increased rates of interest at which bank loans and funds are provided. Body There has been an increase in the demand for clothing and textile industry goods throughout the world (FAINI, 1992). Past two decades have experienced tremendous amount of success of the industry of textile. During the period 1990 the total export of textile conducted throughout the world was 212 billion and after 18 years it increased by $401 billion (Ahmed, 2012). Pakistan even witnessed an increase in the amount of textile goods produced and exported during the era of 1990 to 2008. During the period of 1990, Pakistan exported $3.6 billion worth of textile related goods and by 2008, this figure increased to 11 billion (SHARMA, 2006, p.19, LOPEZ ACEVEDO, 2012, p, 1999). Pakistan has experienced growth in the industry but has faced various obstacles and challenges due to which the growth rate has been slow. PakistanÃ¢â¬â¢s share in the export of textile has declined to 1.81% during 2008 from 2.23% as recorded in 2005 (SCHAFFER, 2009, p.344). During this three years period the production of textile has remained volatile due to heavy increase in power prices and low amount of availability of power. Pakistan faces various problems due to which the growth of their textile industry has remained sluggish. The main element of any textile industry is cotton raw material and... This paper gives an insight into Pakistani textile industry and gives recommendations on its further development. The major role in the success of the textile industry of Pakistan has been plated by Cotton which is a very important raw material for the nation. Pakistan is regarded as the fourth most producer of cotton raw material and third most user of this raw material throughout the world. It is expected the industry will continue to grow and become one of the reason of economic growth in the economy of Pakistan. This industry has proven to attract foreign money into PakistanÃ¢â¬â¢s economy and it is responsible for hiring the highest number of employees in Pakistan and there is no other industry that can replace it. Over the previous four decades the textile industry of this nation has displayed its strength in the international arena. Textile industry of Pakistan is not new and has a very huge history. The day when Pakistan gained existence on the world map, it had only two te xtile mills operational within the nation. Later, due to policies adopted by the government, the industry grew at a very fast pace. Today it is the leading sector of Pakistan and is the major contributor for the success of the economy of Pakistan and the manufacturing industry. The paper states that cost of production can be further decreased with the adoption and implementation of machinery that produces higher amount of bales as compared to the quality of bales being produced currently.