Textiles sector of Pakistan: The challenge beyond 2004

Abstract

This study focuses on the challenge to Pakistan's effective participation in the multilateral trading system of the next millennium. Among the prerequisites for a more effective integration is the restructuring of the country's textiles and clothing industry. The situation of the latter is analysed and it is argued that the textiles sector of Pakistan is currently hampered by a number of structural factors and appears to be ill prepared for seizing the opportunities arising from the rules and concessions of the post-MFA trading system of the next century. Particularly, it will be the category of made-ups and clothing where Pakistan is expected to face fierce competition with the elimination of the MFA. The restructuring challenge is analysed by concentrating on both domestic and external factors and it is suggested that improved forms of customer focus, information collection and management must be producers' priorities and a major effort is required on the part of Pakistan's Government with respect to infrastructure development and institution building. Finally, it is concluded that factors in one category often interact in important ways, both with one another and with factors in other category. Those who remain competitive by using all means available will survive. Those that do not may find global textiles market something to fear.