Pakistan’s share in global textile market has decreased to 1.7 percent from 2.2 percent. On the other hand, Bangladesh saw an increase from 1.9 to 3.3 percent and India from 3.4 to 4.7 percent. Barriers to growth include 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.
In addition, the country is currently facing a large-scale energy crisis. The 5000 MW gap has created a lot of problems across the country. The government manages the deficit through daily power cuts. However, these power cuts have significantly impacted manufacturing industries in Pakistan. Several textile mills have closed their units because of inability to sustain operations. In addition, according to some media reports, the mills have turned away export orders because of the inability to fill these orders. Orders cannot be manufactured when power cuts per day can last up to 12 hours.
Mian Muhammad Ahmad Shafique