The textile industry is the largest manufacturing sector in Pakistan and the second largest employer after agriculture sector, providing employment to nearly 15 million people which is about 30 percent of the total 49 million workforce in the country. Textile is also a major earning sector as the textileexport remained $13.1billionor 53 percent of the totalexportsfrom Pakistan in 2013. Pakistan is also one of the largest exporter of textile products in Asia and contributes 8.5 percent to the GDP in Pakistan. On agro-industrial sector, Pakistan is the fourth largest cotton producingcountry in the world with the third largest spinning capacity in Asia after China and India, and contributes 5 percent to the global spinning capacity.However, despite having a strong farm to industrial network, the industry has failed to meet the challenges of the 21st century.
According to newspaper reports, textile and clothing exports from Pakistan have fallen by 5 percent during the first two months of the current fiscal year. When the European Union granted Pakistan the Generalised Scheme of Preferences (GSP) Plus status, it was hoped that the industry will grow by 15 percent, but it has failed to reap the benefit of this scheme thanks to energy crisis and devaluation of the Pakistani rupee. The commerce experts fear major layoffs in hundreds of industrial units if uninterrupted gas and electricity supply have not been ensured in the industrial sector. Right now the export proceeds has fallen to $2.169 billion in July-August 2014 from $2.289 billion over the corresponding months of the last year.
Pakistan’s industry has grown on its own, as the government functionaries often create hurdles rather than providing facilities to the businessmen. However, the time has come the government should take major steps toward this earning sector and facilitate the industrialists to manufacture value added exportable goods. Bangladesh’s example is before us which has made a major leap in readymade garments in recent years. Pakistan should also follow the suit and encourage the business community to set up readymade garments units as plenty of material and skilled labour is available in Pakistan.
