Pakistan has taken a number of steps to enhance exports of cotton products. The textile policy for 2015-19 envisions doubling the exports of the textile and clothing sector from 13 billion dollars to 26 billion dollars. In order to reduce the cost of doing business, electricity tariff for industrial units has been reduced. Availability of affordable finance for the export sector has considerably improved.

Duty-free import of textile machinery is continuing during the current financial year. A technology up-gradation fund scheme for the textile sector has also been formulated to help boost exports of textile products. Exports of cotton yarn from Pakistan have risen while its consumption by the domestic value added textile sector has declined. Since consumption of cotton yarn by the value added textile sector has reduced exports of cotton yarn have increased.

Pakistan is the fifth largest producer of cotton in the world, the third largest exporter of raw cotton, the fourth largest consumer of cotton, and the largest exporter of cotton yarn. Meanwhile the power loom industry in Pakistan is facing a serious financial crunch. It has to bear the brunt of imports as well as multiple direct and indirect taxes including sales tax. More than half the power loom units have already closed down and unemployment has reached dangerous levels.