Challenges of Textile Industry in Pakistan

Business English Program

Institute of Business Administration (IBA)

Submitted By : M. Tauqeer
Submitting Date: 2012

Introduction
Textile industry is backbone of the Pakistan economy. It contributes more than 60% to the total export earnings

of the country and provides employment to more then 38% of the manufacturing labor force. Although the growth in the textile & apparel sector has been declining after WTO and currently some other factors, which well discuss in detail subsequently The current scenario posses challenges,

Sustain its global positioning Increase its market share by volume & unit values, Peaceful & economical environment Institution support

But its depend upon,

Finding
Textile sector facing a lot of challenges and it has badly suffered due to

the poor policies of the Government & global barriers. Exporters are demanding that government should give them facilities to cope with the existing challenges. This sector facing the brunt of high energy prices is now faced with soaring prices of cotton which have 75% share in total cost of textile products. The regression is mainly attributed to power shortages, the soaring cost of production and political turmoil, besides a stiff competition in the world market. Some other factors involved i.e.

Increase cost of production, Low productivity, Poor quality, Week management, Labor management,

Hence the industry is facing serious threats of losing its share in the

international market.

Analyses

Major weaknesses of Pakistans textile industry enlisted some of them, Low-price image, Political & peacefully environmental, Power/energy Crisis, Gas & Water Crisis, Inadequate infrastructure, HR Development, E-Commerce, Social Compliances, Effective Marketing, Insufficient technical institutions,

Similarly, very expensive power, low grade technology leading to low productivity and poor quality, outdated machinery, lack of considerable up gradation of human resource skills and confusion in political, religious and social situation, including terrorism.

Suggestion
After detailed study and research, need to be realized the factors of

declining and fast track implementation of effective strategy by both govt. as well as industry. Some recommendations stated below,
The Government has to ensure: Adequate finance for capital investments, Implementation of the existing textile policy for long term project and

business planning without economic shocks. Fast track implementation and arrange a strategy to reduce the shortage of Gas, Water and Power energy crisis quickly. A peaceful environment is main responsibility of the government; political instability & terrorism culture will discourage to the foreign investors so require a concrete action for peaceful state. Consolidation of Federal/Provincial/Local Government Taxes and collection at one source.

Suggestion (Continued)
The industry has to: Redevelop competitiveness by improving productivity,

cost of production and reduce wastages. Focus on the potential customers/markets, Develop marketing strength by adopting aggressive marketing strategies. Human resource management, an area where local industry has been lacking with severity. Shift to man made fibers from continuously producing cotton. Effective approach to research & development (R&D).

Conclusion
The Industry has potential to perform better but,

appropriate & sincere approach has to be made by both Government & Industry to meet the challenges of,

Present competitive environment Future scenario.

Investment in knowledge of markets, training of

workers, improvement in labor productivity and product development would be immediate areas for each to concentrate.