FOUNDATION UNIVERSITY RAWALPINDI CAMPUS

BACHELORS IN BUSINESS ADMINISTRATION

FINAL PROJECT

SUBMITTED TO: SIR SHABAZ KHAN

SUBMITTED BY: ALI AHMED SAJID (049)

SECTION: B

SUBJECT: ISSUE IN PAKISTAN ECONOMY

Table of Content:
1. Summary:......................................................................................................................................3
2. Problem in Textile Industry since Independence of Pakistan…………………………………………………………..3

3. Solution to these Problems……………………………………………………………………4

4. Alternative Solution………………………………………………………………………….5
5 Conclusion…………………………………………………………………………………….6
6. References……………………………………………………………………………………..6

1. Summary:
The textile industry is the greatest gathering industry in Pakistan. Pakistan is the eighth greatest exporter
of textile things in Asia. Material region contributes 8.5% to the GDP of Pakistan. Also, the region uses
about 45% of the total labor force in the country (and 38% of the collecting workers). Pakistan is the
fourth greatest producer of cotton with the third greatest turning limit in Asia after China and India and
contributes 5% to the overall turning limit. As of now, there are 1,221 ginning units, 442 turning units,
124 colossal turning units and 425 little units which produce material.

2. Problem in Textile Industry Since Independence of Pakistan:

The fundamental difficulties are energy crisis, fluctuating yarn costs, deficiency of gas supply and burden
concealing, peace and lawfulness circumstance, degrading of Pakistani money, absence of innovative
work (R&D) foundations, absence of present day hardware and apparatus and creation cost. It is
suggested that the material area can assume a fundamental part for the advancement of the economy if
difficulties and hindrances eliminate on schedule. Albeit, a few difficulties are wild however it tends to
be settled by well characterize approaches and methodology by government foundations and material
affiliation bodies in Pakistan.

 Energy Crisis
The energy emergency is the significant obstacle that the material business faces in its excursion
towards development. The general energy emergency in the nation has many adverse consequences
however the area which has been influenced gravely is the material area. A few organizations have
furnished their modern units with elective fuel sources like generators and sun powered energy and so
forth yet, they are typically very exorbitant or diminish valuable oil holds. The new energy projects
under the Pakistan-China Economic Corridor (CPEC) is viewed as a decent sign for the business since
these undertakings will satisfy the energy necessities of our country.

 Peace and lawfulness circumstance

The rule of law circumstance has influenced pretty much every area of our economy. Unfamiliar and
neighborhood financial backers in the wake of psychological militant exercises have thought that it was
hard to put resources into our country and the vast majority of them have moved to Dubai, India, and
Bangladesh. This is additionally the quandary with the material area which has lost some valuable
speculations throughout the years because of boundless fear based oppressor exercises in our country.
The activities "Zarb-e-Azab" and "Radd-ul-Fasad" have acquired a significant improvement the rule of
peace and law in the country and an expansion in unfamiliar speculation is normal in the coming years.

 Gas load shedding

The consistent stock of gas is likewise very significant for our material area however that has not been
the situation. The deficiency of gas has gigantic adverse consequences on our material areas abridging
its development. Investigation of energy assets ought to be focused on as it's anything but a colossal
sponsor for the generally modern development of Pakistan.

 Change in Yarn costs

There is no approach at the Governmental level at fixing the costs of yarn. This is another issue for the
material area which has not been settled at this point. This is influencing businesses on one side and
ranchers on another side.

 Absence of R and D

Our worldwide rivals have investigated new scenes through research work however we are as yet
utilizing the old techniques for creation in the material business. Because of this, our territorial rivals are
creating great material items contrasted with us. The presentation of cross breed seeds which can
create better return is likewise the need of great importance however it requires research work at an
enormous level with the help of legislative assets.
  Absence of Training

Most of work in our industry is undeveloped. This is another significant shortfall in our modern power
contrasted and provincial contenders. Organizations should be set up both at the public authority level
and at the business level to farm laborers with current abilities.

 Absence of current hardware

Enormous charges on the import of current apparatus are hindering the modernization of our material
industry. The public authority ought to present plans through which duties are diminished on the
importation of current modern apparatus. This decrease in assessments won't just build the yield of
modern creation however will likewise assist our country with procuring required unfamiliar trade holds.

3. Solution to these Problems:

The following advances ought to be taken to advance the general circumstance of our industry and the
material business specifically.

 The answer for the Energy emergency

Our administration needs to begin constructing new dams to beat this hazard of energy deficiency.
Without energy no progression for the advancement of the material business is reasonable. The public
authority has effectively begun chipping away at the CPEC with the assistance of China through which
the Chinese government is burning through 34 US billion dollars just on energy projects .

 Peace and lawfulness circumstance

Improvement of the rule of law is the main pre-imperative alongside energy supply. The public authority
needs to give full-confirmation to every one of the financial backers and particularly unfamiliar financial
backers who are not acclimated with the climate.

 Gas load shedding

Steady gas supply with reasonable pressing factor is vital for the development of the material business.

 Change in Yarn costs

The public authority should fix yarn costs for every year to assist the material area with developing and
make more positions. The obsession of the cost will profit the helpless ranchers the most.

 R and D
Innovative work are quite possibly the main parts of development in any industry. Government assets
for this reason can create contemplates whether utilized appropriately.

 Absence of training

The labor force ought to be prepared to meet present day necessities.

 Absence of current hardware

The public authority should eliminate or if nothing else decrease charges on the import of present day
hardware else our material industry will proceed with its old strategies for creation. With old techniques
for creation, it is difficult to anticipate that our industry should rival the created world.

4. Alternative Solution:
Pakistan has a vigorous textile industry, sufficient prepared work and tremendous potential for cotton
crude stock creation, yet the once incredible material area of Pakistan is drifting rudderless today. I might
want to demand the material area of Pakistan to get inventive in their drawn out improvement. The
material business should offer a fixed help cost for cotton and furthermore convey great seeds and water
system hardware to ranchers improving cotton creation and settle crude material costs.

In the subsequent stage, the textile industry should attempt to work with presenting the cotton crop with
help cost in Afghanistan and Tajikistan, helping triple their crude material and furthermore lessening
costs. The business can build their creation in fabric fabricating and furthermore help increment other
material items creation throughout the long term. Reusable tissue fabrics, material sacks, cotton channel
paper, final resting place material, blended material and thicker strands material ought to be focused on as
new items with potential for high nearby deals and fares. The business ought not to seek the public
authority for help as these drives can be taken by the PTMA or nearby mechanical chambers. The
material business is sufficiently adult to attempt to improve cotton creation and upgrade material creation
in Pakistan.

5. Conclusion:
The textile industry of Pakistan assumes a significant part in procuring unfamiliar trade, giving
work to the country. Be that as it may, with the completion of amount framework in world,
Pakistan textile lose share in world exchange of material items. Pakistan textile items will have a
major potential to catch huge portion of world exchange however there are bunches of reasons
which powers to move away from utilizing the full limit of textile apparatus to acquire more
what's more, more unfamiliar trade for the country. In impending year, Pakistan material fares
are 10-11 billion US dollars roughly. Administration of Pakistan isn't not kidding in settling
issues like lack of power and gas which powers the material exporters not to take orders in light
of the fact that not satisfy the orders on schedule. With these reasons import of textile hardware
declined year on year premise. With this load of reasons Pakistan material proprietors utilize old
hardware which is less proficient and not sufficient with the contending nations.
 6. References:
https://www.thenews.com.pk/print/621497-improving-textile
https://www.examinationspoint.com/2016/12/textile-sector-problems-and-solutions.html