Textile Industry of Pakistan Industry Overview

Textile industry in last years has grown very fast. In 1947, there were only 6
spinning factories in Pakistan, which have now grown to the figure 503. The
main factor behind the growth was the reduction in duties. The import tariff on
cotton factories was reduced from 85% to 50% in 1985 and then to 20% in
1988. Also, in 1988 the restrictions on renewal and expansion of spinning and
weaving factories were removed.
Pakistan is now the fourth largest cotton grower in the world behind China,
USA and India. Textile has become the most important industry for earning
the foreign exchange. It accounts for 60-65% of the foreign exchange earned
in a year, which is approximately $5.5 billion.
Current situation in the textile industry is not very promising. The process of
cotton has increased in the recent period, in addition to this the electricity and
sales tax have also increased. Cotton yarn price is decreasing and other input
prices are increasing.
The textile process given below describes the activities taken in the textile
industry