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Textile industry of Pakistan

Introduction:
Textile is a term that comes from “texere”which is a Latin
word, that means “to weave. A cloth, especially one
manufactured by weaving or knitting; a fabric.
The textile industry is often considered the backbone of the
Islamic Republic of Pakistan’s economy. Pakistan’s textile
Industry is the fourth Largest Cotton Producer.• 6th largest
importer of raw cotton• The Third largest Consumer Introduction

HISTORY OF TEXTILE
1950:
In 1950 Textile industry was started in our country. PIDC came into being which
had the main objective of industrializing the country in major fields. The modern
development of the sector started in 1953 with the inauguration of the Valika
textile Mill at Karachi.
1960:
In mid-sixties there were about 180units of textiles bleaching, printing and
processing units, mostly situated in Karachi and Punjab. New private investment
began with a highly protected home market. Newly established mills were based
upon imported technologies but there was a lack of technical staff and shortages of
capital.

1970:
In 1970-71 there was 113 textile units and the industry had 2,605 thousand
spindles and 30 thousand looms. After the separation of East Pakistan Cotton
Export Corporation of Pakistan was established which meant that most of the
private sector work was taken over by the state. The textile industry suffered heavy
losses because the export of cotton was controlled by the CEC.
1980 :
There was a rapid growth in spinning sector till 1980-81 spinning continued to
expand. The eighties brought a relief to the textile industry due to the boom in
international market and industry friendly policies of the government.1980.

1990-98:
World demand for good quality, wide width fabrics grew and replacement and a
modernization process started. Machinery for producing garments and made-ups
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was also freed from import duty. As a result, a huge expansion in the spinning
sector took place in the first five years of the 1990s.The number of units rose to
440 in1996-97

1999-2008:
In Textile exports share total export of Pakistan has declined from 67% in 1997to
55% in 2008, as exports of other textile sectors grew Textile exports in 1999 were
$5.2billion and rose to become $10.5billion by 2007.

2009:
Textile industry is being hit hard due to ongoing energy crisis, depriving the gas
supply to the textile units for three days a week. Pakistan’s cotton cultivation has
declined also due to several factors ranging from cultivation of traditional varieties
and via traditional methods, poor marketing, and failure in making timely
payments to cotton producers.

2010:
Significant changes to the general sales tax (GST) on industrial sector including
textiles. (APTMA) had prepared a based report for the federal government in
which it has been projected that the textile industry exports would cross over $16
billion compared to its present level of around $8 billion.

2011:
Textile exports stood at $12.5 billion from July 2010 to May 2011.Energy crisis
leaves Pakistan textiles in problem

2012:
Pakistan’s $13.8 billion textile industries struggling to survive a critical shortage of
energy to run its plants.10 percent of the spinning mills and fabric printing units
have shut down, half of the remaining plants are struggling to survive, thousands of
textile workers were unemployed, burned tires, and shouted slogans against the
government.

2013-2014
Textile millers and workers were in protest .
New government has done a major achievement which may bring revolution in
textile sector .
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Value chain of textile industry:

Market structure
As businesses enter a market, look to develop a brand or aim to increase sales of
particular products, they must choose where and how to spend marketing dollars.
Even though there often appears to be a myriad number of ways to handle this
issue, the vast majority of marketing falls inside within six major modes or
methods.

1. Direct Marketing
Direct marketing aims to elicit an immediate response of some kind in precisely
targeted recipients, ranging from placing a phone call to making a purchase.
Marketing messages may take the form of physical mail, telemarketing calls or
email.

2. Public Relations
Public relations refer to the management and development of beneficial
relationships between an organization and public segments, such as stock owners,
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the media and customers. In addition to the well-known press release and press
conference, PR includes crafting message content and providing advice regarding
the impact of controversial advertising or business decisions.

3. Personal Selling
Personal selling entails placing a salesperson in the room with a potential or
existing customer to answer questions and highlight the benefits of a product. This
approach offers a chance to build and maintain relationships, while capitalizing on
the greater attention a client pays to another person.

4. Sales Promotions
Sales promotions seek to provide an incentive to consumers, typically to purchase
a product or increase interest in a brand. Discount pricing, samples and coupons
are common types of sales promotions.

5. Advertising
Advertising includes a broad range of approaches that can aim to build brands,
improve reputation or increase product purchases. Common methods of advertising
include print ads in newspapers and magazines, radio spots and television
commercials. Many businesses now integrate online ads.

6. Events
Events provide a way to introduce a product or service in a context that targets
specific consumers while enhancing the odds of the brand sticking in the memory
with an experience. Events that include celebrities often yield free publicity and,
by proxy, free advertising.
7.Internet
Arguably, the exponential growth of Internet use and social media, in particular,
makes it the unofficial seventh major mode of marketing communication.
However, the line between online communication as a separate mode and the
Internet as simply another communication channel through which to engage in
advertising, PR, direct marketing and promotional activities remains unclear.
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Technological trends affect in textile industry:

The textile industry is a global industry. The textile materials are made from fiber,
yarns, and fabrics. Due to the variety of materials, textiles can be found in anything
from high fashion to the air filters in your vacuum cleaner. This means that this
industry is one of the largest in the world and employs millions of people.
While the textile industry's focus was originally on the end product, countries have
recently started to focus on the science and technology sides of textiles. The ability
of a country to create new machines and technology gives its manufacturers an
even larger share of this market, which, in turn, makes them more money.

Technological Advances:
Over the last few decades, the textile industry has seen a facelift. Although the
original machines and their processes are still being used, they have evolved into
more technologically-advanced versions of the originals.
Now, the machines that used to be worked manually by skilled laborers can be
computerized and programmed to make the needed textile materials. This has
negatively affected the employment rate for this industry, since there are fewer
people needed to man the machines.
For example, employment in the textile industry within the EU alone saw a 40%
drop during the 1980s and 1990s, which was a serious downfall of the new
processes; however, the prices of textiles decreased due to this automation,
creating more money for the industry and the countries producing textiles.

Other technological advances are:

Knitting machines: Machines create knitted materials in large swaths of
material now, instead of long strips that are then looped and sewn together.

Pleating: Pleating can now be done solely by a machine and does not require
laborers.

Laser printing: Just like later printing on paper, textile machines have been
made to laser print onto clothing, like jeans and shirts. Designs are created on
material more quickly and are more precise.

Digital printing: Layered printing has also been translated into clothing, which
makes designs more complex.
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3-D Printers: Although mostly found only in the high fashion community right
now, 3D-printed textiles are now being used to create clothing. Companies like
Nike are finding ways to use this technology to make innovative shoes. The hope is
(and current trials show) that, eventually, 3D printing will be used on thinner and
resilient fibers to make actual, soft clothing.

Nanotechnology: This is the newest innovation and is still in the beginning

stages. The textile industry is looking to use nanotechnology to create more
scientific clothing, like water-repellent, self-cleaning, and fire-repellent items.
Nanotechnology will also allow the textile industry to make products at lower
energy thresholds, which helps to sustain the environment.

Major Players And Key Competitors:

Major Players:
 Chenab Limited
 Fateh Textile Mills
 The National Silk & Rayon Mills Limited
 Gul Ahmed Textile Mills Limited
 Hussein Industries Limited
 Kohinoor Textile Mills Limited
 Nishat Mills Limited
 Safa Textiles Limited
 The Crescent Textile Mills Limited
 Fazal Textile Mills Limited

Key Competitors:
The main competitors of Nishat Mills Limited:
 The Crescent Textile Mills Limited
 Chenab Limited
Within the Apparel & Textile Sub-industry, to which Crescent Textile belongs to,
there are three major competitors to it.

 Ibrahim Fibers Limited (1998 sales of 3.27 billion Pakistan Rupees)

 Bhanero Textile Mills Limited (1998 sales 1.16 billion Pakistan Rupees )
 Kohinoor Industries Limited (1998 sales 3.04 billion Pakistan Rupees )
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The main competitors of Kohinoor Textile Mills Limited:

 Nishat Textile Mills limited
 Al-karasm Textile Mills limited
 Safa Textiles Limited

Barriers To Entry
Textile industry took following aspects for growth to compete:

 Cost of production: The rising cost of production in the country has stalled
investment as well as export competitiveness. A vertical shift in monetary
policy and KIBOR rates have contributed to an increase in the cost of doing
business and reduced lending abilities of local manufacturers.
 Energy Crisis: Pakistan is currently facing a large-scale energy crisis. Due
to energy demand exceeding supply by about 5000 MW. The government
manages the deficit through daily power cuts (or blackouts). These power cuts
have significantly impacted manufacturing industries in Pakistan. Several
textile mills have closed their units due to inability to sustain operations. In
addition, the mills have reportedly turned away export orders due to the
inability to fill these orders when power cuts per day can last upwards of 12
hours.
 Research and Development: There has been a limited effort to improve
the quality and quantity of textiles in Pakistan through research and
development, limiting the competitiveness of Pakistan's textiles in the global
market.
Barriers to enter
Industry concerns:
 Intangible asset protection
 Brand name, R&D.
 Low Marginal profit
 Due to nature of the Industry, a low cost method is preferable.

Preferred entry mode:

 Licensing
 Low cost method suitable for industry structure
 Lack of control
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 Difficult to protect IP
 Reputational damage (no control of HR)
 Preferred for production of textiles

Subsidiary

 Most expensive entry method

 Control established
 Ease of protecting IP
 (Sometimes) Preferred in case of retail
 Established in developed countries due to market potential

Government Imposed barriers

Tariff imposition

 Content restrictions: Local content proportions may be specified

 Health and safety regulation: Potentially imposed on employees (to

prevent sweatshops) and on goods.

 Quotas: Quotas may be imposed in order to prevent an economies reliance

on textile industry. Previously imposed in South pacific areas
Summary:
 For industry type licensing is often preferred due to lower costs.
 History of government protectionism and market distortion.
 Global economy for textiles is growing due to lowered barriers.

Affect of government regulation

Government regulations in the area of textiles are categorized according to whether
they are designed to protect the worker, the environment or the consumer. In
most instances regulations will entail an increase in manufacturing costs which will
be passed on to consumers in the long run. However, the existence of imports may
serve to depress price increases in the case of regulations affecting the worker or
the environment.
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The Ministry of Textiles Industry, with a view to encouraging development of

textile industries in Pakistan, may undertake such measures which will include
investment, generate employment, add value to production and
manufacturing activities within the textiles value chain, improve productivity,
promote research and development and reduce the cost of doing business.
The measures may include schemes for: reducing the cost of financing for
investment (BMR) in textiles industry
Promoting employment in textile industry including those that encourage
employment of women and special persons, training of manpower to ensure
adequate supply of skilled workers, establishment of institutions of textiles, fashion
and design development,
Promoting textile exports including measures to offset the impact of local taxes
and levies imposed by the federal, provincial and local governments and other
actions which add to uneconomic costs and affect export competitiveness, and
strengthening of textiles allied industries, etc.
The government is imposing new taxes to the industry. Fair and effective
regulations, however, promote business growth. Moreover the Ministry of Textile
Industry may undertake such measures which will introduce Pakistan brand
names in international and domestic markets, increase exports and, in general,
enhance the image of textiles industry of Pakistan.

Consumer Tastes Affect on Industry:

Consumer tastes refer to the products and services that consumers consciously
choose over others.
Customer Behavior is varying rapidly. People are more aware about quality
issues now hence want to spend their money on high quality products. This is the
reason imported products are much preferred over local. But inflation has caused a
compromising change in behavior of consumers from the lower class.
People wear clothes for many different reasons. Some of these reasons are to
satisfy physical needs, e.g. for protection. Others are for psychological needs and
social reasons. As a general concept, clothes help people to express themselves
Fashion is one area where consumer tastes change fairly often. What do you look
for when you go shopping for clothes? Do you look for the same style each time,
or do you check out the new styles?
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Fashion businesses change their inventory all the time to keep up to date with
what their customers want. For example, the clothes and styles available in spring
won't be the same ones that are available in fall. The clothes a fashion business
chooses to have in stock are also determined by what their consumers want. If
consumers want long dresses one year, then the businesses will change so they will
offer those long dresses

Individual Considerations:
Age: Age is one of the considerations when people choose clothes and textile
products for different people. People who belong to an age cohort tend to have
similar needs and considerations.

Gender: Traditionally, males and female have different roles. Role

specialization of males and females is still an important part of our today’s culture.
Cultural customs or traditions establish the gender of a type of garment. For
example, pants as masculine and skirts as feminine.

Figure: Body image refers to a consumer’s subjective evaluation of his / her

physical appearance.

Lifestyle: Lifestyle refers to the pattern based on which a person lives his / her
life. One’s lifestyle represents the way how one selects to allocate one’s income on
different products, including clothing.

Education: More educated consumers are more global minded, receptive to

imports and more demanding. These factors stimulate apparel producers to provide
well-designed, high-quality apparel products.

Occupation: Write collar and women usually spend more on clothing than blue
collar and men.
Income: The amount of money that consumers spend on clothing and other goods
mostly depends on their income.

Quality and Durability: Consumer demand for quality has risen in recent
years. The durability of a garment and the ease of caring for it are often factors
being considered in the selection process.
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Culture:
Individuals and groups in a particular culture differ in their ideas of what is
attractive, appropriate and fashionable because they are influenced by different
cultural environments.
Motivation for Clothing Selection for Different Cultures Protection: physical
protection, psychological protection
Religious Habits and Special Religious : Clothing Sometimes, religious clothing
is worn only during the performance of religious ceremonies. However, it may also
be worn every day as a marker of special religious status

Environment:
Physical Protection Different climates in different places create different clothing
needs. Garments for summer and winter vary in terms of texture, weight and color.
Clothes for hot weather need to make the wearers feel cool while clothes for cold
weather need to have warm effect.
The fabrics of garments should be chosen according to climatic conditions.
Colors affect the level of heat absorbance of clothing. The white color reflects
heat while the black color absorbs most heat. When going outdoors, people
sometimes need protection against wind and rain.

Implications on the Industry:

Because of these consumer taste changes industry makes different planning and
use many implications such as:
 Proper Selection of Clothing
 Wardrobe Planning
 Clothing Care
 Making the purchase

Industry Responsibility:
Manufacturers have to put more effort on quality control and product testing.
Retailers have to make sure the product information provided is accurate and
advertisements should be without misleading content. In order to listen to and
entertain complaints, many large retailers establish their own Customer Service
Counters to handle complaints from customers.
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 Providing Truthful Information on Products

 Providing Truthful Information on Products
 Labor Rights Responsibility
 Labor Rights Responsibility

Demographic Trends
Demographic factors:
There are a number of demographics that can affect industry. Demographics are
various traits that can be used to determine product preferences or buying
behaviors of consumers. ... They then target consumers with like characteristics in
their advertisements and promotions

Income Influence:
Income is one demographic variable that can affect industries. A company's
products usually appeal to certain income groups. For example, premium products
such as high-end woman's clothing usually appeal to women with higher incomes.
Conversely, people with comparatively lower incomes are more sensitive to price
and, therefore, may prefer purchasing discount products. People with lower
incomes have less disposable income. Value is a major determinant in the products
they purchase. Hence, a company may best reach lower-income people through
discount retailers and wholesalers and attract higher-income buyers in specialty
retail shops.

Age Variables:
Age is another demographic element that impacts industries. A company's products
and services are more likely to appeal to certain age groups.
In Pakistan 70% population are youngsters
According to economist, Youngers mostly towards the fashion and style that create
demand for textile industry for new products
So textile industry is responding to this demand by providing wide range of
products to select form.
Thus young values, habits and way of living are being transformed into a more
liberal and sometimes consumerist outlook.
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Geographic Region:
People's buying preferences also vary by geographic region, which is another type
of demographic. Those who meet buyers' needs and requirements in certain
geographic regions can earn higher sales and profits. For example In Saudi Arabia
mostly women prefers gowns mostly and In America women prefers to wear
modern dress like jeans and skirts.

Economic cycle
The textile sector in Pakistan has an overwhelming impact on the economy,
contributing 57% to the country’s exports. The textile industry is the second
largest employment sector in Pakistan.
Pakistan is the 8th largest exporter of textile commodities in Asia and textile sector
contributes 8.5% to the GDP of Pakistan.
It is pertinent to mention that the exports of textile products posted a growth of
12.8 per cent year-on-year to $4.4 billion in 2017-18.
in Pakistan, textile sector contributes approximately one-fourth of industrial value-
added and offers employment to about 40 percent of industrial labor force.
Barring seasonal and cyclical fluctuations, textiles products have sustained an
average share of about 60 percent in nationwide exports.
Pakistan’s textile experts also mention that the ancillary textile industry adds
cotton spinning, fabric processing, home textiles, cotton cloth, cotton yarn, cotton
fabric, towels, hosiery and knitwear and readymade garments, these components
are being produced both in the large scale manufacturing organized sector also as
in the unorganized cottage/small and medium units.
Economic advisor mentioned in the economic report of Pakistan that the
spinning sector which is the backbone in the ranking of textile production.
Presently, as per record of Textiles Commissioner’s Organization (TCO), it
comprises 517 textile units (40 composite units and 477 spinning units) with
13.414 million spindles and 199 thousand rotors installed and 11.338 million
spindles and 127 thousand rotors in operation with capacity utilization of 84.5
percent and 64 percent respectively.
Pakistan has lost its textile export share from 2.2 to 1.7 percent in the world market
over the last decade, Adviser to Textile Industry Shahid Sattar told The News.
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“Pakistan’s textile industry is currently facing the toughest periods in decades as

despite being the 4th largest producer and 3rd largest consumer of cotton, country
is facing deficit in cotton production since 2013 and relies heavily on imports of
cotton to meet local demand.”
During ongoing season, he said, industry has failed to achieve the cotton
production target of 14.1 million bales. The production has been estimated at 11.9
million bales against the domestic demand of approximately 15 million bales. “As
the cotton sowing season has ended on May 31 (started in April), only 50 to 55
percent of sowing target has been achieved so far.”
He said that cotton oriented textile industry is mainstay of economy of Islamic
Republic of Pakistan. It contributes to 60 percent of countries’ exports, 8.5 percent
to total GDP and provides employment to 40 percent work force.

The major challenges faced by the industry are unstable world prices,
macroeconomic instability and high cost of doing business, inappropriate policy
environment and anti-industry government attitude. In addition to economic issues,
Pakistan’s textile industry is also facing strong competition from the regional
competitors (Vietnam, Bangladesh, India and China) as well as from the global
competitors like American and European textile industries.
Cotton production has declined in the past few years due to many reasons; like
ongoing water shortage, outdated technology, low quality seeds and fertilizers.
Government’s biased policies towards sugarcane, natural disasters, high cost of
doing business and high prices of raw materials and competing crops etc. are
responsible for the drop in cotton production.
“Our government accepts that one million bales change in production of cotton
translates into a 0.5 percent impact on GDP.” He said that textile industry of
Pakistan has been the worst hit by power cuts. Almost 200 textile mills have closed
their operations and about one million workers lost their jobs. As a result low
profitability and loss in textile industry, the machinery being used is obsolete and
has not undertaken up-gradation.
In January 2018, Pakistani government withdrew 4% custom duty and 5% sales
tax to meet the shortfall of silver fiber and to promote value addition. This
withdrawal of custom duty contributed positively in the growth of textile industry
and as a result the exports of value-added textile products recorded a growth of
12.8 percent in the first five months of 2017-18.
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In 2012-13 Pakistan produced 12.88 million bales from 2.8 million hectares. In
2017, the cotton sowing area was reduced to 2.41 million hectares while the
production declined more sharply to 10.73 million bales. Cotton productivity
declined in Punjab from 701 kg/hectare in 2012-13 to 664 kg in 2016-17. The
projections for 2018 crop are also not very bright.

Seasonality affect in the textile industry:

In different seasons we wear different kinds of clothes because in different seasons
the weather is different and we wear clothes according to the weather. Industries
processes and works according to market demand.
Fashion is a way of expressing oneself; it can be a lifestyle, image or even art.
Work wear is worn for protection, out of practicality or to stand out from the
crowd.
they are all under influence of the seasons and trends, to some extent.

Climate change:
As a result of climate changes, seasons are becoming less predictable each
year and it becomes harder to align fashion industry's specific processes to match
the market demand.

Climate control:
Another aspect that influences the way we dress is the climate control systems in
almost all buildings, cars and stores. Due to this, it is not necessary to wear
warm sweaters to work when the heating is on the entire day.

Fast Fashion
On the other hand, we hardly have time to consume fashion collections as they
are replaced by others rapidly. Industries also workout according to upcoming
fashions .hence there is also seasonality factors that affect the textile industry.

Industry-Wide Sales Volume

 The share of Pakistan’s textile industry in domestic commerce has
surpassed the sector’s export figures, according to data compiled by the All
Pakistan Textile Mills Association (APTMA) – an umbrella organization of
textile manufacturers.
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 Textile sales in the local market currently stand at $13.7 billion out of the
combined local and foreign sales of $26 billion, APTMA revealed. Textile
exports for the year 2016-17 stood at $12.3 billion.
 The organization said the textile industry’s share in the local market was
still below potential since it constituted merely 32% of the textile items
bought by consumers. Smuggled or informal (24%) and imported goods
(44%) make up the rest of the textile products being sold in Pakistan.
 According to APTMA statistics, the textile sector contributes 8.5% to
Pakistan’s total economic output of $300 billion. The sector is
underperforming both in domestic as well as in export markets because of
several structural and external challenges.
 APTMA said Pakistan’s global market share had declined from 2.2% to
1.7%, a fall of 23% over the past few years. Regional competitors
including India, Bangladesh and Vietnam have, however, managed to
increase their exports to $36.4 billion, $31 billion and $31.5 billion
respectively by 2016 from $27.7 billion, $19 billion and $15.2 billion in
2010.
 Their share in global textile exports has increased proportionately to 4.9%,
4.2% and 4.2% respectively.
 Apart from these issues, the textile sector, in general, was facing several
challenges including outdated technology, APTMA representatives said.
 While several manufacturers have upgraded their production units by
installing technologically advanced machinery and equipment, the trend
has failed to pick up momentum across the entire sector.
 Pakistan’s textile industry has lost technological advantage over its
competitors as no major investments have been made over the past decade.
Industry sources identify investor reluctance to make new investments due
to high cost of doing business as the reason behind this shortfall.
 “The industry has lost 15% of the technological edge it had over its
competitors,” said an APTMA member.
 The textile sector saw investment of $1 billion in machinery in 2005-06.
Annual investments since then have come down with a mere $560 million
invested in 2016-17, down 44% from 2005-06.
 India and Bangladesh, on the other hand, added 25 million and 4.29 million
spindles respectively to their textile sector infrastructure between 2005 and
2015 along with 78,600 and 42,900 shuttle-less looms.
 APTMA said the major reason behind the declining trend was high cost of
electricity. Energy costs constitute more than 30% of the total conversion
cost in spinning, weaving and processing industries.
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 Industry representatives decried that the industrial gas tariff in Pakistan

was 100% higher whereas electricity tariff was approximately 50%
expensive than that in regional competitors.
 Electricity bills are inflated with various surcharges including line losses,
theft surcharge and system inefficiencies, which cannot be passed on to
international buyers of Pakistani textiles.
 APTMA said the industry was also facing sustainability challenges due to
non-tariff barriers including compliance-related barriers to entry into major
markets.
 Conditions such as implementation of the United Nations’ Sustainable
Development Goals, compliance with 27 UN conventions for the EU’s
GSP Plus status and modifications in World Trade Organization rules on
labor standards restrict the entry of Pakistani goods in several markets.
 Aptma representatives are still optimistic about the industry’s export
potential – estimating additional export capacity of $3.9 billion subject to
an enabling environment.
 Revising free trade agreements and regional trade agreements according to
the country’s comparative advantages is one such remedy.

Question No 2:
What are the trends in sales volume within your industry?

Answer:
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Question no 11:
What are the key financial measures in your industry (average profit
margins, sales commissions, etc.)?

Answer:
Significant variation in gearing ratio exists at aggregate level, across various sectors,
firms and over time. We notice substantial variation in overall corporate gearing (GR)
and debt-equity ratio (DER) of corporate sector from 2000 t0 2009 (Figure 1 & 2).
Interestingly overall economic 3 conditions and equity market has also seen visible
changes during the fore-mentioned periods (Figure 3).

Real interest rate remained very low over this period and even negative in some years
from 2005 to 2009 (Figure 3). Extremely low interest rates gave a boost to financial
leverage (gearing ratio) to its peak in 2005 followed by sharp rise in non-performing
loans starting from 2007 onwards (Figure 5) which now is likely to pose a big challenge
for financial sector and push economy into another crisis.

Gearing ratio of the textile sector has shown its peak level during 2005 due to negative
real rate interest followed by an explosion in its financing costs which along with
removal of textile quota and acute energy crisis later on hampered their profitability
(Figure 4) and ability to repay its debt.

Quarterly Performance Review of the Banking System (December 2010) reports loans
of Rs. 705.2 billion of textile sector alone by the end of 2009 out of which non-
performing loan is Rs. 171.5 billion which constitutes 31.3% of the total non-performing
loans. This motivates us to explore various aspects of gearing ratio of the firms of textile
industry in Pakistan.
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