Friday, January 3, 2020

Causes of textile industry downfall in Pakistan

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Causes of textile industry downfall in Pakistan

Introduction: Textile is a Latin word that comes from the word “Texture” which means to “ weave”.Textile industry was started in 1950 our country. Textile industry is the backbone of Pakistan economy.
Textile industry is the largest manufacturing industry in Pakistan is the 8th largest exporter of textile in developed countries.
Pakistan is the 4th largest producer of cotton. Karachi is famous city for textile industry in Pakistan.
Textile industry is that converting the raw material into finished good and it includes textile developing, producing, manufacturing and distributing.
Causes of Textile Industry Downfall In Pakistan:
The textile industry of Pakistan in last two years facing many problems like high energy cost, shortage of electricity, high oil prices, high transportation cost, low material etc.
The main causes of textile industry downfall is noncompetitive international market. These are the following reasons for downfall of textile industry.
  1. Lack of research and development:
Most developed countries are using biotechnology to increase the production. They use research and innovations to achieve a goal, but Pakistan textile industries have no innovation. Most developed countries produce high quality of cotton for efficient work, but Pakistan have low quality of cotton because they have no innovations.

2.                  Lack of efficient machinery:
Most developed countries using efficient machinery to produce valuable goods and Pakistan have not efficient machinery to perform the task. So this is the reason to downfall of textile industry.

3.                  Low labour productivity: 
Many Asian countries have skilled labour to perform the task, But I n the Pakistan have not skilled labour to perform the task. In 1776 the book “Wealth of nation” Adam Smith gave the concept of division of labour is that breaking down the job into narrow repetitive task.

Using the pin industry as an example: Adam Smith claimed that 10 individuals, each doing a specialized task could produce about 48,000 pins a day among them. However, if each person worked alone performing each task separately and even, he produces 10 pins a day. Due to the skilled labour we can increase our productivity and lower the wastage of time.
4.                  Increasing cost of production:
Production cost of textile industry is increased due to the high interest rate, taxes and decreasing the value of Pakistani rupee. The value of Pakistani rupee is continuously decreasing because of increase in the cost of electricity the prices of production is increased. So this is the most difficult challenge for Pakistan textile industry to survive and compete the developed countries.
5.                  Raw material prices:
The prices of cotton and other raw material prices is increasing that affect the cost of production due to higher cost of production the demand for export is decreasing. So this is the reason of the downfall of textile industry.
6.                  Lack of electricity:
Load shedding  is a main reason of downfall of textile industry due to the load shedding  the production  process stop and goods are not produce the time and without electricity it is more difficult to again continue the production process.

Chart of textile industry:

Source: MarketLine
  1. We overcome the downfall of textile industry by using efficient machinery to produce goods.
  2. Uses of skilled labour for efficient work and better performance.
  3. To improve the supply chain, availability of clean cotton at competitive  rates.
  4. Uses of biotechnology and more research to achieve a goal. When a industry make innovation so we compete the international markets.
  5. Increase the export in foreign countries so we overcome the downfall of textile industry. 
  6. Stop the load shedding can continuously improve our economy by produce the goods.
Textile Industry is the backbone of the economy of Pakistan. The textile industry of Pakistan has an important role in the economic development. It contributes 8.5% in the GDP. Pakistan is the 8th largest exporter in textile industry. In the last two years textile industry facing difficulties because of the increase in the cost of production due to the less competition with international countries.


Students of BBA 2K19 Batch, Shaheed Benazir Bhutto University, Shaheed Benazirabad, Sindh. 


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