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Regionally Competitive Energy Tariffs and Textile Sector’s Competitiveness

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  • PIDE

    (Pakistan Institute of Development Economics)

Abstract

The economic significance of the textile sector in Pakistan is undeniable. The sector contributes around 60% of the total export earnings and provides employment opportunities for around 40% of the total labor force. Although, substantial export earnings of Pakistan are based on textile products; though, its share in the international textile exports is considerably low. Out of a total of $ 792 billion of textile exports, Pakistan contributes merely 1.7%. The sector has so far managed to endure but remained somewhat stagnant due to high manufacturing expenses, recurrent power shortages, high energy costs, and flawed government strategies. Yet, the textile sector outperformed during the current pandemic and recorded a 10.79% growth in exports during January 2021, MoM basis.

Suggested Citation

  • Pide, 2021. "Regionally Competitive Energy Tariffs and Textile Sector’s Competitiveness," PIDE Research Report 2021:1, Pakistan Institute of Development Economics.
    • Handle: RePEc:pid:rrepot:2021:1
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