Pakistan Textile Sector Facing New Challanges
Pakistan Textile Industry Facing New Challenges
Aftab A. Khan Corresponding Author, College of Business Administration, King Saud University P.O. Box 2459 Riyadh 11451, Saudi Arabia E-mail:aftabalam112@gmail.com Tel: 0966543647041 Mehreen Khan College of Business Administration, King Saud University P.O. Box 2459 Riyadh 11451, Saudi Arabia E-mail:mehreenkhan112@gmail.com Tel: 0966591584206 Abstract The Pakistan textile industry contributes more than 60 percent (US $ 9.6 billion) to the country’s total exports. However, currently this industry is facing great decline in its growth rate. The major reasons for this decline can be the global recession, internal security concerns, the high cost of production due to increase in the energy costs etc. Depreciation of Pakistani rupee that significantly raised the cost of imported inputs, rise in inflation rate, and high cost of financing has also effected seriously the growth in the textile industry. As a result neither the buyers are able to visit frequently Pakistan nor are the exporters able to travel abroad for effectively marketing their products. With an in-depth investigation it was found that the Pakistan’s textile industry can once again be brought back on winning track if government takes serious actions in removing or normalizing the above mentioned hurdles. Additionally, the government should provide subsidy to the textile industry, minimize the internal dispute among the exporters, withdraw the withholding and sales taxes etc. Purchasing new machinery or enhancing the quality of the existing machinery and introducing new technology can also be very useful in increasing the research & development (R & D) related activities that in the modern era are very important for increasing the industrial growth of a country.
Keywords: Textile; exports; withholding.
global
recession;
production;
inflation;
marketing;
Introduction
The Pakistan textile industry total export is around 9.6 billion US
Aftab A. Khan Corresponding Author, College of Business Administration, King Saud University P.O. Box 2459 Riyadh 11451, Saudi Arabia E-mail:aftabalam112@gmail.com Tel: 0966543647041 Mehreen Khan College of Business Administration, King Saud University P.O. Box 2459 Riyadh 11451, Saudi Arabia E-mail:mehreenkhan112@gmail.com Tel: 0966591584206 Abstract The Pakistan textile industry contributes more than 60 percent (US $ 9.6 billion) to the country’s total exports. However, currently this industry is facing great decline in its growth rate. The major reasons for this decline can be the global recession, internal security concerns, the high cost of production due to increase in the energy costs etc. Depreciation of Pakistani rupee that significantly raised the cost of imported inputs, rise in inflation rate, and high cost of financing has also effected seriously the growth in the textile industry. As a result neither the buyers are able to visit frequently Pakistan nor are the exporters able to travel abroad for effectively marketing their products. With an in-depth investigation it was found that the Pakistan’s textile industry can once again be brought back on winning track if government takes serious actions in removing or normalizing the above mentioned hurdles. Additionally, the government should provide subsidy to the textile industry, minimize the internal dispute among the exporters, withdraw the withholding and sales taxes etc. Purchasing new machinery or enhancing the quality of the existing machinery and introducing new technology can also be very useful in increasing the research & development (R & D) related activities that in the modern era are very important for increasing the industrial growth of a country.
Keywords: Textile; exports; withholding.
global
recession;
production;
inflation;
marketing;
Introduction
The Pakistan textile industry total export is around 9.6 billion US
References: [1] [2] [3] [4] [5] [6] [7] [8] [9] [10] [11] [12] [13] All Pakistan Textile Mills Association (APTMA) (Various Issues) Annual Report. Challenges for Pakistan. Asian Development Review Pakistan Textile Journal (2009). Pakistan, Government of (2008-09) Pakistan Economic Survey. Islamabad: Ministry of Finance. Textile Industry— Special Report (2009). Business Recorder Pakistan –Special report (2009). Pakistan Observer-Business Survey (2008). Economic Review- NBP( 2009) Pakistan and Gulf Economist. Fasialabad Chamber of Commerce and Industries Punjab Pakistan http://www.epb.gov.pk http://www.fpcci.com.pk PAKISTAN CLOTH MERCHANT ASSOCIATION (PCMA) http://www.pakboi.gov.pk © Research Journal of Internatıonal Studıes - Issue 14 (May, 2010) 29