World Bank inquires about Pakistan’s textile industry

Recently, the World Bank held a special seminar to study the development and existing problems of Pakistan’s textile industry.
The World Bank predicts that the global apparel market will reach US$1.18 trillion by 2020 and US$2.11 trillion in 2025. As the fifth largest cotton-producing country in the world, Pakistan has failed to take advantage of the competition in the international textile market. From 2005 to 2013, the average annual compound growth rate of Pakistan’s textile and clothing exports was only 3.6%, compared with 11.3% for India and 16.2% for Bangladesh. This shows that Pakistan’s textile industry policy has serious problems.
Compared with China, India and Bangladesh, Pakistan has higher electricity bills and serious power shortages. The capacity utilization rate of textile factories is less than 70%. The tax burden level of textile enterprises is 34%, which is higher than Bangladesh’s 27.5% and China’s 25%. . In addition, Pakistani textile enterprises have insufficient investment in textile machinery due to power shortages, the appreciation of the rupee relative to the currencies of other regional countries, and the failure of the national finance to fully support the development of the textile industry, etc., have all caused Pakistan’s share of the global textile market to decline year after year. The World Bank believes that as an important cotton-producing country in Pakistan, textile exports should become an important economic growth point, and the Pakistani government should strive to provide a good environment for the development of the textile industry.