High input costs are resulting in the closure of a large number of textile mills in Pakistan engaged in making yarn and fabrics. The spinning industry is incurring heavy losses by supplying yarn below cost. The textile industry has been hit hard due to the high cost of energy, resulting in making Pakistan’s exports uncompetitive in the global market.

The industry now wants measures to be taken on an immediate basis to improve the efficiency and viability of the textile industry. These include: expeditious payment of long outstanding sales tax refunds and other refunds to address liquidity issue and check the large scale influx of imported yarn and fabrics in the country to save the domestic industry.

Pakistan has been facing a drastic decline in exports during the last four years. The country will encourage investment in the spinning and weaving sectors in such a manner that the maximum cotton can be converted into yarn and downstream products as it will facilitate farmers and the spinning industry while helping the whole textile chain and national economy in general.

Pakistan is helping the entire chain of textile sector to adopt and upgrade to new technology. Funds have been allotted to carry out research activities and bring about a qualitative improvement in industry-academia linkages.