Pakistan has lost its textile export share from 2.2 per cent to 1.7 per cent in the world market over the last decade.
Cotton production has declined in the past few years due to the ongoing water shortage, outdated technology, low quality seeds and fertilizers.

Despite being the fourth largest producer and the third largest consumer of cotton, the country is facing a deficit in cotton production since 2013 and relies heavily on imports of cotton to meet local demand.

Only 50 per cent to 55 per cent of the sowing target has been achieved so far.

The cotton oriented textile industry is the mainstay of the economy of Pakistan. It contributes to 60 per cent of the country’s exports, 8.5 per cent to total GDP and provides employment to 40 per cent of the work force.

The major challenges faced by the industry are unstable world prices, macroeconomic instability and high cost of doing business. In addition to economic issues, Pakistan’s textile industry is also facing strong competition from regional competitors (Vietnam, Bangladesh, India and China) as well as from global competitors like American and European textile industries.

Because of the severe water shortage production of cotton may decline by a further 35 to 40 per cent compared to last year.