The textile industry in Pakistan is the most developed sector of the state’s economy. The share of the total economy it accounts is estimated to be nearly 46%; about 39% of total employees in manufacture are involved in the textile production (Latif & Javid, 2016, p. 192). Pakistan is also the world’s fourth-largest producer of cotton, which is possible due to the country’s fertile and well-irrigated lands. However, there are many challenges in this field of the economy that prevents its growth. In this brief analysis, the key factors that affect the textile industry in Pakistan, both positively and negatively, will be discussed.
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As many researchers prove, the strongest sector of the textile manufacture in Pakistan is represented by young small firms. There is a large number of family-businesses in this field, as well as local manufacturers involving small amounts of employees. As evidence prove, despite the challenges these companies face competing with large manufacturers, such growth factors as people, infrastructure, technology, innovation, and risk management affect them more positively than the companies of a larger size. Small firms usually have a significant number of young enthusiastic employees that gives them an advantage in term of growth speed. Besides, a process of developing and expanding implies technology upgrade; such companies are also more engaged in intensive innovations and embrace possible risks.
However, the number of considerable challenges may be observed in the textile industry in Pakistan. In most cases, analysts indicate the insufficiency of training and lack of technology as a major problem. Low-skilled labour affects the quality level of production that makes it less competitive. The overall level of infrastructure development in the sector is estimated as insufficient, as well as managerial capabilities. This is one of the reasons for poor foreign investment in the sector, despite the significant place of Pakistan’s textile on the world market scene. In addition, strategic thinking might also be improved; in this regard, larger companies may adopt higher flexibility and innovativeness of smaller firms.
Overall, it may be stated that the textile industry in Pakistan remains the leading sector in manufacture. However, it faces a number of challenges and requires finding the strategies of its improvement. The detailed analysis of growth factors, affecting the production both in positive and negative ways, is the necessary step for the elaboration of such strategies, considering the disposition of the driving forces in this area.
Latif, R., & Javid, A. Y. (2016). The determinants of Pakistan exports of textile: an integrated demand and supply approach. The Pakistan Development Review 55(3), 191–210.