Lakhany textile International

Mashood Iqbal

In recent years, Pakistan has faced competition from regional players including Bangladesh, India and Vietnam. In the past decade, Pakistan's share in global textile market decreased to 1.7 percent from 2.2 percent, 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. Energy Crisis: Pakistan is currently facing a large-scale energy crisis. Due to energy demand exceeding supply by about 5000 MW. The government manages the deficit through daily power cuts (or blackouts). These power cuts have significantly impacted manufacturing industries in Pakistan. Several textile mills have closed their units due to inability to sustain operations. In addition, the mills have reportedly turned away export orders due to the inability to fill these orders when power cuts per day can last upwards of 12 hours. Research and Development: There has been a limited effort to improve the quality and quantity of textiles in Pakistan through research and development, limiting the competitiveness of Pakistan's textiles in the global market.

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