Pakistan has dynamic, vigorous and export oriented textile industry that has an overwhelming impact on economy. Economic analysis:
Textile being largest industrial sector generates the country’s highest export earnings of about 58%; Textile industry contributes 8.5% to the country’s GDP.
It provides employment to about 15 million people so the employment rate is 39%( largely under-utilized workforce) Labor force in agriculture: 45.1% more than 49 million.
APTMA(all Pakistan textile mills association) provides direct employment to one million workforce as well as 3 million indirect jobs. “Monthly loss the textile industry because of interruptions in gas supply could reach about U.S. $ 1 billion, or 4 – $ 5 billion for the fiscal year ending June 20 next year. All Pakistan Textile Mills Association (APTMA), with over 50% ($14.8 billion) contribution to the total national exports ($25 billion) and 78% share in the textile exports of the country. The industry's overall contribution of taxes in 2011-12 is expected to reach Rs. 23.5 billion, including payments of withholding taxes and applicability of lower rate of sales tax of 4% - 6% on local supplies. . Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew Currently, major losses are being incurred by this industry with foreclosure looming around. The reasons of this decline are largely contributed by the high cost of production due to increase in the energy costs. Cost of import has risen due to a depreciating Rupee. Rise in inflation rate and high cost of financing has also effected seriously the growth in the textile industry. The sector recorded a 10.2 percent decline in output. The textile industry is now facing a challenge to meet its global commitments in spite of severe curtailment of natural gas and power load shedding in the country. The gas is now...