Pakistan's textile exports declined 16.66 per cent in September 2014. Energy shortage is the prime reason behind the decline. Nearly half of production capacity has been hit due to the crisis.

Apart from non-availability of energy, high interest rates and stuck up liquidity on drawbacks and refunds have played a vital role in the low growth and exports of Pakistan’s textile industry. Exporters say gas is being diverted to unproductive sectors, causing a loss in terms of foreign exchange. They say competitors have made huge investments due to the positive and business-friendly environment provided by their governments. Their grouse is that the government has failed to encourage investment in the textile sector during the last five years and that rivals, taking advantage of the situation, are creeping into their regular markets.

In spite of not having the GSP Plus status, India has managed to gain higher exports than Pakistan. Pakistan’s textile exports have been showing a declining trend since July 2014 and export numbers in the coming months might worsen. The country exported textile goods worth $3.417 billion in the first quarter of July-September this year against exports of $3.559 billion in the comparative period of previous year.