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Textile Industry in Pakistan: Empirical Analysis

Author

Listed:
  • Maria Safdar

    (Lecturer: Department of Economics, University of Sahiwal, Pakistan)

  • Muhammad Zahid Naeem

    (Assistant Professor: Department of Economics, University of The Punjab, Pakistan)

Abstract

Pakistan textile industry contributes more than 60 percent to the country’s total exports during 1990’s. However, currently this industry is facing great decline in its growth rate. The major reasons for this decline may be global recession, internal security concerns and the high cost of production due to energy crisis etc. Depreciation of Pakistani rupee that significantly raised the cost of imported inputs, high inflation rate and high cost of financing has serious impact on growth in the textile industry. In-depth study suggests that the Pakistan’s textile industry can be on winning track if government takes serious actions. Furthermore, the government should provide subsidies to the textile industry for purchasing new machinery or enhancing the quality of the existing machinery. It is suggested that with new machinery, the expenditures on (R&D) would be increased for enhancing the productivity of existing machinery.

Suggested Citation

  • Maria Safdar & Muhammad Zahid Naeem, 2020. "Textile Industry in Pakistan: Empirical Analysis," Journal of Policy Research (JPR), Research Foundation for Humanity (RFH), vol. 6(2), pages 1-12–17, December.
    • Handle: RePEc:rfh:jprjor:v:6:y:2020:i:2:p:12-17
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    textile industry; exports; crisis; Pakistan;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

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