The global export of textiles and clothing, accounting for 6% of global exports is estimated at $370 billion for 2003 of which the share of clothing is $210 billion or 57%. This compares with 67% of Pakistan’s exports being accounted for by textiles and clothing valued at $7.4 billion for 2002-2003, having only 30% share for clothing. Yarn and cotton and MMF fabric alone accounted for 34%Pakistan’s export of textile and clothing is expected to cross the $8 billion mark in2003-2004 from previous year’s nearly $7.
5 billion exports, present high price of cotton notwithstanding.If the Pakistan government and the private sector cooperate, the net balance is in favour of Pakistan. Supply of yarn and fabric to exporters, both within and outside the purview of DTRE should be treated as deemed exports for all purposes, production of MMF/Synthetic should be encouraged, private sector be encouraged to stock-pile and have buffer stock of cotton. The govt on the other hand should agree in the WTO to lowering of duties as it is difficult for Pakistan to have FTAs/ RTAs with any relevant countries and blocs.Pakistan will also have to concentrate on lowering of its cost of doing business for which the Ministry of Commerce and the State Bank has reportedly undertaken studies.
Finally, the three weakest links in Pakistan’s textile chain, viz, ginning and dyeing and marketing initiatives will have to be improved to take maximum advantage of its potentials., From these figures we have observed that textile sector is the second largest sector by size in Pakistan’s economy and after 2001, its debt-equity ratio is decreased considerable which made the industry less risky and attractive for investors.