Barriers for cotton industry

In recent years, Pakistan has faced increasing competition from regional players. In the past decade, Pakistan’s share in global textile market decreased to 1.7 percent from 2.2 percent while Bangladesh saw an increase from 1.9 to 3.3 percent and India from 3.4 to 4.7 percent. Barriers to growth include the 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 running 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 down export orders due to their inability to complete these orders when power cuts per day can last more than 12 hours.

MIAN MUHAMMAD AHMAD SHAFIQUE,

Faisalabad, May 23.

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