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The Rise and Fall of Pakistan's Textile Industry: An Analytical View



The textile industry of Pakistan is one of the most vital sectors for the economic growth of the country. It is a significant contributor to its industrial exports. Over the years, this sector has undergone a rise and fall due to various reasons. The sector has struggled due to high manufacturing expenses, frequent power shortages, faulty strategies and lack of support policies from the government. A worldwide recession, global tension and quality competence are also major threats to the sector. The textile industry of Pakistan is also faced with several challenges and opportunities like frail infrastructure, obsolete technology, adverse law and order situation and lack of investment. The main segments of this sector are clothing and garments, ready-made fabrics, weaved apparels, twisting sector and chemical processing sector. Despite the fact that majority of the textile sales is done overseas to the developed countries, the sector is still way behind South Asian regional competitors and has not performed to its full potential particularly in recent years.
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Vol.12, No.12, 2020
The Rise and Fall of Pakistan’s Textile Industry: An Analytical
Javed Ahmed Memon
Abdul Aziz
Muhammad Qayyum
1.School of Accounting, Zhongnan University of Economics and Law, 182 Nanhue Avenue, Wuhan, China
2.Department of Business Administration, Federal Urdu University of Arts, Science and Technology, Karachi,
3.School of Economics, Zhongnan University of Economics and Law, 182 Nanhue Avenue, Wuhan, China
The textile industry of Pakistan is one of the most vital sectors for the economic growth of the country. It is a
significant contributor to its industrial exports. Over the years, this sector has undergone a rise and fall due to
various reasons. The sector has struggled due to high manufacturing expenses, frequent power shortages, faulty
strategies and lack of support policies from the government. A worldwide recession, global tension and quality
competence are also major threats to the sector. The textile industry of Pakistan is also faced with several
challenges and opportunities like frail infrastructure, obsolete technology, adverse law and order situation and lack
of investment. The main segments of this sector are clothing and garments, readymade fabrics, weaved apparels,
twisting sector and chemical processing sector. Despite the fact that majority of the textile sales is done overseas
to the developed countries, the sector is still way behind South Asian regional competitors and has not performed
to its full potential particularly in recent years.
Keywords: Textile industry, Economic growth, South Asia
DOI: 10.7176/EJBM/12-12-12
Publication date: April 30
1. Introduction
“Textile Division” (2018) examined that Pakistani textile industry is a major driver of economic growth; it
comprises 57% of the total exports. The current international atmosphere of the market is increasingly demanding,
and there is a fierce rivalry in the industry. The logistics network, however, is frail of the textile industry which
needs drastic improvement and enhancement, the output needs to be increased, and there exists a need of having
unique selling proposition in order to thrive and compete. The textile sector has to devise plans, schemes and
policies to overcome the obstacles and become strong and tenacious to contest worldwide.
The Pakistani textile sector is the biggest production section of the nation and is a complex sector as well. In
the past textile manufacturing has been considered lifeblood of the state for creating jobs and trade profits. In terms
of creating jobs, the sector is placed second in Pakistan and ranked eighth in the Asian region for selling textile
goods overseas. It comprises 8.5 % of the total GDP of the country as of 2018, and there was a surge of 12.8% in
textile goods for the year ended 2018 on an annual basis. The sector was worth USD 7.72 Billion at the beginning
of the year 2018 on a semiannual basis, up by 7.18 %, according to The Nation (Nini, 2018).
Javed (2019) wrote that the textile industry is one of the significant contributors to exports of Pakistan. 50 to
60% of the total exports of Pakistan account to the textile, and it utilizes 40% of the total workforce. It has been
said that the textile sector has not delivered its 100 % and has accomplished far from its true potential. Pakistani
textile makes up only less than 5% of the total global textile exports according to Global Village Space News.
Hence, the textile sector can play a pivotal role in the revival of trembling economy of the country by enhancing
the standard and volume of textile goods and increased focus on improved end products.
There have been instances when textile sectors performance has been unsatisfactory. There have been 125
textile companies deciding to seize operations to date, most of them recently shutting down. The idea of devaluing
Pakistani local currency against the US Dollar has not helped the cause of textile sector either. As evident from
the fact that the textile exports plummeted by over 6% for the November 2018 year on year as per The News.
Furthermore, the trade war between the US and China has indirectly denied Pakistan’s textile sector, as Pakistan
exported raw wool to China in a considerable volume (Ahmad, 2018).
“Textile exports: dismal performance” (2019) reported that recent initiatives by the government to terminate
the tax exemption of textile sector on finished goods and has discontinued the credit facility on Value Added Tax
has also affected production and export. This has resulted in higher price and cost of goods sold. The progress of
the textile sector stayed static at $12.3 Billion for the fiscal year 2019. With all the textile divisions indicating
boom, off the shelf wearable ballooned by 33%, clothing climbed by 18% in terms of volume and pillow sheets
cases mounted by 2 % in terms of the export price according to The Business Recorder (2019).
2. The rise and fall of textile sector in Pakistan
Latif and Javid (2016) quoted the statistics of WTO (World Trade Organization) giving some details of textile
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exports from the year 2001 till 2014. Ahmed (2011) provided data of the Economic Survey of Pakistan issued by
State Bank of Pakistan describing the growth rate year on year basis for years 2002 till 2011. The Express Tribune
Statistics revealed the textile exports from the year 2015 to 2017 (Rana, 2017). Khan and Khan (2010) presented
the textile export of Pakistan for the year 2000. Shah (2012) provided statistic for textile exports of Pakistan for
the year 1999 as per The Business Recorder. Fayyaz (2019) expressed slight growth in the textile sector as per
Business Recorder in 2018. Ahmed, Asif, Ali, Tariq, and Khan (2016) provided data on textile exports of Pakistan
in 1999, as described in the table below.
Textile Exports in US$ million
% Growth
or Decline (Year on Year)
Figure 1. Textile export of Pakistan for the past 20 Years
Note: The growth rates are calculated in some places in the above table where it was not available in sources
from where data has been taken.
2013 was a promising year for the textile sector, as the textile exports rose to $ 13.8 Billion. However, it
could not withstand that momentum and the following four years witnessed a downfall, with exports plummeting
to mere $ 10.9 billion in 2019. The textile commodities of Pakistan in the past had global presence and recognition,
were well known for maintaining excellent standards and having acceptable value. In 2016, the textile sector was
awarded as being highly automated sector. However, recently, the mainstream cotton export has plunged by 21 %
in the previous four years as per Dawn Paper (Sattar & Tanveer, 2018).
Clothing transport mounted by 7.66 % annually to reach $. 5.51 billion for the second half of 2017 because
of the sale of high-quality garment goods. After a period of the rise in 2013-2014 when the overseas textile sales
stood at robust $13.73 billion, the following years brought a downfall. In 2014-2015 it dropped to $13.47 billion,
and in 2015-2016 the textile commodities dispatched were at $12.44 billion. A meager recovery was observed in
2016-2017 when garments sold overseas increased by 0.04% to reach $ 12.45 billion. Gas levies doubled, and
energy fares rose by 50 % in 2017 than rivals according to The Express Tribune (Rana, 2017).
The textile sector was a bit slow to start after the creation of Pakistan. However, gradually, the sector picked
up the pace and in during 1990s garments comprised 9.5% of the entire GDP (Gross Domestic Product). In 2003-
2007 this share remained at around 7% to 7.5%. As per the Pakistan Economic Survey of 2008-2009, Pakistan has
1221 cotton ginning machines, 458 spindles of cotton spinning (124 big and 425 small). The Pakistani textile
industry is fragmented in subdivisions, in which 80% are small factories, 15% are moderate-sized plants, and 5%
are massive processing installations (Khan, 2019).
“In 2018-2019, Pakistan’s largest export industry was the textile industry, with hosiery and readymade
garments contributing Rs. 544 billion to total trade” (2019). However 2018-2019 is a period of the rise of the
textile sector, as it emerged as the country’s most important export sector with socks, nylons and off the shelf
clothes and dresses accounting 24% of total revenue. Other major contributors were pillow covers and bed sheets
Rs. 227 billion, i.e. 10%, cotton clothes, Rs. 211 billion 9%, cotton thread fiber Rs.110 billion, i.e. 5% and bed
sheets Rs. 77 billion, i.e. 2% according to Gallup Survey statistics (2019).
During 1990s Pakistan textile sector was one of the robust and automated industries of the subcontinent. But
following the year 2000, the sector’s downfall started. The proportion of Pakistan textile in global export dribbled
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from 2.2% in 2006 to a mere 1.7% in 2017. Pakistan’s fall in global commerce in the last 10 years was due to
declining standards, frail textile exports and careless local strategies. In 2013-2015, out of Pakistan’s 20 trade
partners, the trade ratio enhanced of only 9 countries. The selling of textile goods overseas to China shrank by
10%, and that to UAE (United Arab Emirates) fell by 20.2%. The overall textile contraction in Pakistan was by
10% from the year 2011-2017 as per Business Recorder (Sattar & Tanveer, 2018).
Arain (2019) studied that the years 2008-2009 were struggling times for clothing segment with a negative
growth ( -0.70%), which later was on track to recovery in the years 2012-2013 at 13.02%. The political uncertainty
and adverse law and order situation were considered the reason for this deteriorating condition. For the half ended
2007-2008, the textile trade was worth $6.85 billion, compared to $6.47 billion in 2008-2009, registering a drop
of 5.6% according to the Federal Bureau of Statistics.
According to the Economic Survey of Pakistan (Ahmed, 2011), the journey of the textile industry has not
been a smooth road. The entrance of worldwide economic crisis was an instant setback, coupled with rising
manufacturing expenses, escalating power tariff, rising prices of commodities and a sharp decline in local currency
value were among various factors considered for the downfall of the textile industry in Pakistan. In 2004-2005 the
sector growth was at a staggering 24.50%, which later collapsed to a mere 1% in 2010-2011.
Hamid, Nabi, and Zafar (2014) asserted that the textile sector is greatly affected by energy outages. It has
been hit due to inappropriate tactics and plan of actions mainly by the government. Textiles share is 30% in sizeable
production facilities in Pakistan making goods having greater utility. In the early phases of Pakistan 1960s, textile
played a major part in making Pakistan one of the progressing economies. This was followed by a slight derailment
due to Bhutto’s strategy of state ownership during the early seventies (1970s). By 1990 textile became of sublime
importance for prospering industrialization plan.
Two major customers of the textile sector in Pakistan are the United States and the European Union which
aggregates 60% of entire textile outflow. However, the soaring value of raw cotton has always been an issue of
concern. The textile sector is one of the main and stable industries in Pakistan. Pakistan’s economy is 24 %
dependent on industrial sectors. Years 2004 to 2006 were a period of the tremendous rise of the textile sector in
Pakistan. In 1999, textile exports were $5.2 billion, which is 10 years, coupled to $10.2 billion in 2010. Pakistan
fulfills 3 % of textile import needs of the United States according to The Pakistan Credit Rating Agency Limited
(“Sector Study Textile Sector- FY11,” 2011).
Ahmad (2018) explained that years 2013-2018 were marked with a dismal performance by the Pakistani
textile sector. This crisis was due to the lack of funds allocated to the automation of processes and irregular plans
of the ruling regime. The situation further worsened with a 61% surge in power tariff, coupled with Rs. 3.61 per
unit imposed as taxes. The sector could not take advantage of a decrease in petroleum prices to bring down
production expenses which are heavily dependent on electricity for cotton fiber processing. The quantity of cotton
manufactured in 2012-2013 was 12.88 million cotton bundles, which plummeted to 10.73 million in 2016-2017
because of scarce land available.
Figure 2. Textile export growth/decline from 2011-17
During 2011 2017 periods Pakistan observed a serious decline while other major countries exports have
shown substantial growth.
3. Reasons for rise and fall of textile sector of Pakistan
Aslam (2019) narrated several reasons for the decline of the textile sector. Lofty bank borrowing rates, high
commodity prices have limited the financing ratio in the industry. Despite 34% depreciation of rupee during 2018-
2019, textile shipments could recover and gain momentum. Furthermore, the political leadership owes PKR 400
billion to traders, who are finding it challenging to convert their investments into cash and this is giving rise to
repayment crisis. Also, a note of hand amounts to Rs. 80 billion opposed to vending levy return obligations
according to Custom News Pakistan.
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Pakistan’s textile sector has been unable to take advantage of the quota allocation exemption. After the step
taken by the Pakistani government to eliminate duties, the direction was shifted off the textile arena in Pakistan.
But due to expensive unprocessed materials like raw cotton, global rivalry and the changes in trade rules of
countries to which textile commodities were shipped; the productivity of textile segment has remained mercurial
over the years (Ahmad & Kalim, 2014).
4. Performance Overview and Outlook of the Textile Sector of Pakistan
Azeem, Qamar, Azam, Saboor, and Khan (2017) reviewed that at the time of the creation of Pakistan the number
of textile plants was merely 3, today it has leapt to more than 600. Pakistan comes at number four in terms of
cotton production globally and third in terms of most usage of cotton. Textile’s share in total export is a major 63%
of total exports as of 2017. The textile sector is immensely dependent on the natural unprocessed form of cotton
available and the boost in the sector is considered helpful in the recovery of the depleting foreign exchange reserves.
During the 2009-2014 periods, a sum of $2.3 billion was assigned to the sector, later on for 2015-19 this amount
diminished to 640 million for no apparent reason.
As of the year 2019, the textile sector contributes 57% of the total exports, $ 13.53 billion out of $ 25 billion.
This accounts for three million employment opportunities. The requirement of the Pakistani clothing industry is
15 million packs of cotton; however, it manufactures only 10 million bundles. This demand is expected to further
rise in the coming five years to around 20 million. Energy prices to the textile sector are subsidized at Rs.10-11
apiece consumed, which is around 35% of manufacturing expenses according to Daily Times (Imran, 2019).
The current leadership has set an ambitious target of achieving $ 30 billion in exports by boosting financing
and employment creation. They aim to enhance cotton production from 660 kg each hectare to 1200 kg. At present
around $1.1 billion of Forex Reserves are used to cope with to ship 3.5 million bundles of cotton. An increase in
cotton output to 20 million bundles will enable garment sector to generate $ 3 billion excess revenue and will allow
textile exports to expand by 10 - 15% and will multiply foreign exchange reserves (Dunya News, August 18, 2019).
5. Challenges and opportunities of textile sector of Pakistan
Kazmi (2018) mentioned in his article in Pakistan Economist that textile sector in Pakistan has both challenges
and opportunities. Lack of automation and technological advancement is one of the setbacks, and there is also a
shortage of reasonable standard of threads and wools. Cloth weaving machines positioned in factories are 9084 in
number, but those in working condition are only 6384. The subdivision of the textile sector off the shelf clothing
is a prominent segment. This sector has great appeal and prospect in both foreign and local market. The other
segment which holds a lot of prominences is the premium quality sector, in which sewed apparels account for 35
of the entire fabrics shipped abroad.
Lately, the sector has encountered several problems like power outages, scarcity of gas, unpredictable
fluctuation in thread prices, law and order situation, depreciating rupee, lack of centers for innovation and
improvement of products and processes, lack of latest apparatus and appliances and high manufacturing expenses.
Proper steps, scheme and plan of action by the ruling regime and relevant textile governing institutions need to be
put in place. To address these shortcoming rebates and subsidies should be given to the textile industry. Moreover,
cheap energy and power for a short span for the revival and recovery of the sector can be useful (Shah, Warraich,
& Kabeer, 2012).
“Textile Industry of Pakistan Current Challenges and Opportunities” (2019) reviewed that the shortage of
raw cotton has led Pakistan to buy it from overseas markets; this started ten years back. At present Pakistan imports,
3 million bundles of cotton and locally makes 11.5 million bundles as per Fiber 2 Fashion (2019). There are also
some opportunities present on which Pakistan can capitalize on, i.e. the contract of Pakistan with EU on Free Trade
which allows ease of doing business between the countries by eliminating trade barriers.
Despite apparel and cloth segment is deemed as the backbone of textile value-added products, in reality,
Pakistan is still lagging as its contribution to global export is 1.10 % compared to Bangladesh 7.66. Reason for
this setback is the negligence of high-value items. Pakistan was unable to capitalize on the international trend of
handmade filaments. Also, the textile export markets of Pakistan are not broadly branched out, and 88% of textile
shipments are made to the European Union and the United States alone. Pakistan is ranked 17
in terms of textile
exports, and its global share is only 1.10 % as of 2017 (“Pakistan’s Readymade Garments Sector: Challenges and
Opportunities,” 2019).
“New opportunities for textile industry” (2019) examined that there lies the opportunity for the textile
segment to tap like maintaining viability and meeting global standards of customer protection and wellbeing,
preserving textile assets, countering the weather changes like rising temperatures, pollution and global warming.
This will enable the sector to boost and keep on track with global benchmarks. Foreign customers are very
responsive to the atmosphere adherence, well-being and protection of workers and corporate social responsibility
practices. So the real progress of textile in Pakistan is dependent on the automation of processes and use of modern
machinery and equipment, alongside the fulfillment of environmental obligations.
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One of the main problems facing the textile industry is heavy taxation and the misuse of authority by tax
officials. Opportunities include laying down the base and develop foundation for uninterruptable gas supply to the
sector and assign nominal and affordable levies on gas, curtailing the expenses of doing textile trade, removing
obstacles in way of textile sales, release of the unpaid levy amounts to traders and enhancing the revenue of the
industry (“National Assembly talks about challenges of Textile Industry Pakistan,”2017).
Alvi and Shahid (2016) wrote that other challenges facing the textile sector of Pakistan are the international
economic downturn. The 2008 economic crisis in Europe and America has adversely affected Pakistan’s exports
because of Pakistan in a significant exporter of textile to these countries. Furthermore, the worldwide financial
decline has resulted in joblessness. Resultantly, textile’s contribution to Pakistani export fell from 67% in 1997 to
55% in 2008 according to Research Foundation for Humanity. Other problems facing the sector are unproductive
Human Resource policies like lack of mentoring and focus on skill-building of workers. Moreover, the wages paid
are meager. Another setback is scarce allocation of funds to the sector.
Expenses of manufacturing and wages are soaring in China. Hence Pakistan has the opportunity to fulfill this
need and become globally viable. Production of 50,000 kegs of cotton filaments can generate 400 employment
opportunities, and in clothing, this amount is multiplied four times. Moreover, proper investment in the sector can
have a positive impact on boosting the textile exports. It is estimated that $1 million financings in twisting and
knitting can raise exports by $0.27 million as per the International Growth Centre. Due to frail infrastructure and
deteriorating law and order, the investors’ trust remains shaken. To regain this trust, benefits and relief should be
provided to the sector (Sheikh, 2015).
“Textile Fabric” (2011) explained that other shortcomings of the sector include an unexpected surge in the
cost of inputs affecting the flow of processes and creates liquidity problem of assets. To deal with this issue textile
factories have reduced their inventory at the lowest level. Furthermore, the struggling national economy also poses
threats. Another reason is the high progressively increasing cost of textile machinery. However, there is an
excellent opportunity if these apparatus are manufactured in house with guidance and partnership with friendly
countries like China which can result in cheaper manufacturing.
There is a lack of availability of credit and non-fulfillment of financing needs of the sector by the national
authorities. The credit shortfall is USD 2.9 billion. 5% of the financing needs are served by the banking sector.
The sector is rightfully called the cornerstone of Pakistan as it contributes 30% to GDP, 70% job creation, makes
up 25% of total export and 1.7 % share in the production industry as of 2017. Some other challenges faced are
weak pricing negotiations for production inputs, downtimes due to shutdown, state intervention, and structural
weakness of the tax system and legitimacy issues (Khan, 2017).
6. Conclusions and recommendations
It goes without doubt that the textile industry of Pakistan is suffering mainly because of the lack of seriousness of
concerned authorities in government. This has discouraged and demotivated the entrepreneurs for further
investment in excelling their operations and quality standards, and increasing precision demand by the foreign
There are a lot of rectifications and improvements that can take place in the textile sector of Pakistan. The
high manufacturing cost, which is primarily driven by high prices of raw materials like cotton fibers bought from
overseas, can be lessened by leniency in doing business by the reduction in levies and duties on raw materials and
equipment. Moreover, a robust supply value chain can enable far stretched reach to production materials. Workers
need to be coached about new skills, and the use of technology should be embraced.
Research and development centers should be formed to experiment with new technology and evolve new
methods of processing and producing high-end products. Boost financing in the technology and infrastructure by
micro corporations, the uninterruptable flow of necessary unprocessed materials and easy access to loans. Pakistan
can also utilize CPEC (China Pakistan Economic Corridor) and good relations with China by leveraging and
partnering with them to advance the textile technology. The terms and conditions for trade with friendly countries
like China should be in favor of Pakistan like the weaving and apparel segment and maximum textile commodities
should be brought in the textile exports net. Making improvement in processes and manufacturing operations by
giving accreditation of standards and boost in promotional initiatives and creating unique identity labels. Provide
funds for better quality material resources.
Resolution of liquidity issue and amount owed and stuck up by means of compensation and reliefs or subsidies
should be implemented. Boost the role of various textile bodies for the revival and progress of the sector.
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... Its share in the global economy is 31%. The apparel sector contributes 1% (Memon et al., 2020). This sector relies on spinning activity. ...
... Exports of textile grew by US$3.5 billion in 2019-2020. Textile products have the largest share of exports (23%; Memon et al., 2020). ...
... Hosiery and readymade garments contributed PKR 544 billion to the total trade. Socks, nylons and off-the-shelf clothes accounted for 24%, pillow covers and bedsheets accounted for 10% (PKR 227 billion), cotton clothes for 9% (PKR 211 billion), cotton thread fibre for 5% (PKR 110 billion) and bedsheets for 2% (PKR 77 billion; Memon et al., 2020). The yarn is converted to finished cloth through a manufacturing process shown in Exhibit 3 (Raaz, 2016). ...
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This case study is about an entrepreneur and his journey from a zero-revenue company to a PKR 250 million (US$1.5 million) turnover company. This case study stipulates how he managed to create a distinctive position in the Pakistani textile market. It focuses on the transition from a small-scale business to a large-scale manufacturing business. It highlights the dilemma in decision-making for an entrepreneur to be adaptable to new technology and forward vertical integration. He was standing at the crossroads of what to do next with his 40-year-old company, Exclusive Textiles. This real-life case exemplifies the basic requirements for starting a business and understanding how businesses evolve with time.
... Moreover, Bick et al. [6] discussed low wages of workers and limited working conditions considering the fact that both environmental and social costs related to the textile manufacturing sector are very scattered. Memon et al. [7] argued that the textile industry is an essential pillar of economic growth in Pakistan while the leading components are the following: clothing and garments, readymade fabrics, weaved apparel, twisting sector and chemical processing sector. Pakistan, which is a developing country, is part of the group of lower-middle-income economies, with a GNI per capita from USD 1036 to USD 4045 [8]. ...
... On the other hand, Spulbar et al.[36] argued that an extreme event, such as a global financial crisis or COVID-19 pandemic is a rare and highly unpredictable event, but very difficult to anticipate and forecast. Memon et al.[7] have highlighted various issues affecting the textile industry of Pakistan such as frail infrastructure, ...
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The main aim of this research paper is to examine the linkage between safety training, safety rules and procedures, safety performance and protection against hazards in Pakistani construction companies related to its effects on the textile industry. The primary responsibility of the organization is to provide a safe workplace to the workers where workers do their work safely. The current study examines the relationship between safety training, safety rules & procedures and safety performance. A total of 450 workers from 15 companies participated in the study. A questionnaire survey was used to collect the data. The findings revealed that both safety training and safety rules and procedure were significantly and positively associated with safety compliance. The results propose that construction companies should give proper training to their worker in order to avoid any bad incidents. Similarly, adequate safety rules and procedures are essential for a safer work environment. The textile industry is a very important sector in Pakistan with a significant impact on employment and the labour market.
... 133 Additionally, this sector holds a 40% share of employment in the industrial sector in Pakistan. 133 Furthermore, the textile sector accounts for 60% of Pakistan's exports 134 and utilizes 40% of the nation's workforce. However, these figures do not represent the full potential of the textile sector, 132 and steps regarding creativity and innovation must be taken to increase its market share in national exports and the worldwide market. ...
... 135 Given this, Pakistani textile firms cannot survive in global markets without creativity or innovation in production. 134,135 Moreover, the competencies required for innovation, revolution, and modernization can be attained through redesigning the products and by adopting advanced technologies. 137 Additionally, scholars have elaborated that utilizing new techniques, structures, and rules is essential, especially when turning products from raw materials into finished goods. ...
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Purpose: Based on the componential theory of creativity, this study examined the link between high-involvement work practices and employees' innovative behavior by further investigating the moderating and mediating role of leadership humility and employees' personal initiative. Methodology: To test the hypothesized model, the data were gathered from 255-line staff and 119 supervisors working in the textile industry in Pakistan via the time lag technique. The proposed hypotheses were analyzed through partial least squares structural equation modeling using Smart-PLS software. Findings: The results indicated that high-involvement work practices were significantly related to employees' innovative work behaviors. Additionally, the moderation findings revealed that a higher level of leadership humility strengthens the relationship between high-involvement work practices and employees' personal initiative. Furthermore, employees' personal initiative mediates the relationship between high-involvement work practices and their innovative work behavior. The findings of the moderated mediation model indicated that a higher level of leadership humility leads to higher innovative behavior of employees in the presence of high-involvement work practices via employees' personal initiative. Practical implications: This study's findings are helpful for the management of organizations to understand the factors that enhance innovative work behaviors in high-involvement work practices. Moreover, managers should establish humble behaviors in their leadership style to influence employees' personal initiative, which indirectly influences their innovative work behavior. Originality/value: The present study highlights the importance of leadership humility and employees' personal initiative in the relationship between high-involvement work practices and innovative work behaviors of employees in the textile industry of Pakistan.
... Asia's textile industry has become a rising star in the global sphere, Pakistan ranks as one of the top textile producers on the continent, and the textile industry is one of the core contributors to its economy (Ali et al., 2020;Kanat, Abbasi, Peerzada, & Atilgan, 2018;Memon, Aziz, & Qayyum, 2020). Pakistan recently reached 108th position from 136th in ease of doing business index due to the continuous planned improvements in regulations related to business activities. ...
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This study examined the impact of green human resource management (GHRM) and green supply chain management (GSCM) on the economic, social, and environmental performance of 272 (ISO-certified) textile firms in Pakistan. It investigated how a firm's size and the number of years since adopting GSCM practices influence performance. Survey data were collected from these firms through a cluster sampling approach and then analyzed through structural equation modeling. Results highlighted that GHRM positively influences a firm's environmental and social performance. Results further indicated that inbound and outbound GSCM activities mediate between GHRM and a firm's environmental and social performance. The moderation results revealed that a firm's size is crucial for improving performance. From an emerging economy perspective, this study draws the attention of policymakers and managers, concluding that implementing GHRM improves the green orientation of all the departments within a firm and helps organizations achieve sustainability goals.
... Economic liberalization, intellectual property protection and regional innovation innovation activities are often interrelated with each other [41][42][43]. Using the data of 2822 Turkish manufacturing firms and the multinomial logit estimation method, Lo Segarra-Blasco et al., [44] found that product innovation contributes more to firms' export performance than process innovation and firms with proper innovation strategy have a higher export probability to high-income countries. ...
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International openness can affect regional innovation through more export opportunities, enhanced import competition and the spillover effects of foreign direct investment. Many studies have been conducted based on different countries for capturing the determinants of regional innovation, but very little literature is available with contradictory findings for the case of China. Based on 19 years’ panel data of 31 Chinese provinces, this paper analyzes the impact of international openness on regional innovation measured by the number of patent grants. The positive effects of overall trade and a higher proportion of exports and imports to GDP are significant and robust across different model specifications, indicating that an increase in international openness can promote regional innovating activities in China. The causal relationship of all the variables depicted by path analysis matches the results of the system GMM model. Higher intellectual property protection provides each region with the opportunity to obtain economic benefits from innovation and then make a higher investment in R&D activities. Besides, the lag effect of regional innovation capability can also explain a large part of local innovating activities. In our subsample regressions, the positive effect of trade openness on innovation is majorly manifested in developed areas like eastern provinces.
... Pakistan is ranked fourth in the world's largest textile producing countries and it contributes to about 60% of the country's exports (Memon et al. 2020). Although Pakistan's textile industry is flourishing continuously and is an integral part of the country's economy, the side impacts of this industry are problematic for the environment. ...
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This study aims to investigate the decolourization efficiency of reactive black 5 (RB-5) dye by using CuMn2O4/gC3N4 coated zeolites (zeolite 4A) for the first time in a hybrid electro-flocculation-catalytic ozonation process. A comparison between various treatment options such as electro-flocculation, electro-flocculation in the presence of a catalyst, and catalytic ozonation in combination with electro-flocculation was explored. Moreover, the effect of different factors such as pH, time, catalyst dose, ozone dose, radical scavenger, and voltage has been studied in each treatment option mentioned earlier. The results indicated that the best treatment option was found to be catalytic ozonation in combination with electro-flocculation with removal efficiency (RE) of 90.31% at pH 10 after 30 min of the treatment process. The hydroxyl radical scavenger effect indicated that the synergistic catalytic process follows a radical mechanism. It is therefore concluded that CuMn2O4/gC3N4–zeolite catalysts in synergic electro-flocculation-catalytic ozonation process may be effectively used for the treatment of textile wastewaters. HIGHLIGHTS The present research explores the CuMn2O4/gC3N4 coated Zeolites performance for the removal of RB5 in synergic processes.; A comparison of synergic processes was studied.; The synergic electro-flocculation catalytic ozonation process showed the highest RB5 removal efficiency of 90.31%.; The work concludes the effective application of CuMn2O4/gC3N4 coated zeolites for the treatment of textile wastewater.;
... It also ranked amongst the top textile industries of the world. Pakistan is one of the top ten exporters of textiles & apparels in the world [3], [49], [50]. It stands on the 4th largest position in world cotton producer countries, 6th largest raw cotton exporter, 3rd biggest cotton consumer in the global economy. ...
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The textile and apparel industry is one of the biggest competitive industries in the world. Nowadays, industry 4.0 concepts put pressures on textile and apparel companies to integrate advanced technologies. Consequently, Business Intelligence (BI) systems are diffusing rapidly to process large data sets to harness the true value of smart technologies. Regardless of its potentials, most textile and apparel companies are lagging and hesitating to adopt this credible innovation in the presence of a high failure rate (70%-80%) especially in developing countries. To achieve the successful adoption of BI systems, statistical assessment is required to better understand this complex phenomenon. Therefore, a BI system model based on Technology-Organization-Environment (TOE) is developed to evaluate the role of potential determinants pertaining to the users, technology, organization, and environment. Data were collected using a survey with self-administered questionnaires from decision-makers with authoritative designations in the textile and apparel industry, academia, and software companies. Influential relationships among critical determinants were assessed and validated by using Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach. The results of this study would contribute to the success of costly BI system projects and will motivate the industry experts to potentially assign investments for the BI projects in the developing countries to sustain in the competitive markets.
... The data shows that even the annual number of residential and commercial customers have increased 5.6% and 3.8% in 2019 but the percentage of load consumed per customer has decreased by 6.4% and 5.5% for residential and commercial customers respectively as shown in Table 5. The load per customer for the industrial user has increased by 3.4% when the Textile industries, the largest industries of Pakistan, shown a negative growth of 9.47% in 2019 (Memon and Qayyum, 2020). ...
Developing countries are facing electrical energy shortage problems. These nations are adopting load shedding to protect their national grids from instabilities. In this research, load shedding is analyzed where customers opt for the use of uninterrupted power supplies (UPS) and store energy in batteries. It is found that Pakistan has wasted 7117 GWh of energy by charging and discharging the batteries of UPS by 26, 201, 910 residential and commercial customers of the country in 2018. The energy deficit of Pakistan can be reduced from 8.7% to just 1.5% by removing all UPS from the national grid. Several renewable alternatives such as photovoltaic (PV) systems, concentrated solar power plants, pump-hydro on dams, floating PV systems, wind turbines, and PV energy import from the Middle East have been suggested. Analytic hierarchy process is used for the selection of best city and best lake for PV and floating PV system respectively based on multivariable criteria. Pakistan overcame the gap between the electrical load demand and capability in 2019. A reduction of 77% in load shedding in Pakistan resulted in a dipping of load peak of 26 GW in 2018 to 25 GW in 2019. This drop-in load in 2019 is a direct result of the removal of 77% of UPS from the national grid. India, Sri Lanka, Nepal, and other developing countries can use this analysis to enhance their power systems.
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Pakistan’s textile industry is suffering from an electricity shortage and political turmoil. Due to a state of instability in which nothing is certain, things cannot be brought into balance by the state. Therefore, we employ firm-level data (101) to investigate the impact of expected and unexpected power outages on textile firm productivity throughout 2014 to 2019. The study assesses the importance of political stability for the flourishing of Pakistan’s textile sector. Outages were found to significantly negatively impact textile sector sales revenue, likely leading to lower results (by 0.240% and 0.0569%). The duration and frequency of outages had significant adverse influences on reducing firm revenue. It has been estimated that a 1 h outage will cause to loss of revenue of approximately 24 percent. Comparatively, load-shedding hours had a smaller impact on lowering firms’ sales revenues, which were 5% to 8% with and without political stability inclusion. Further, outage hours decreased the export of textiles by 0.286%. The magnitude of export reduction by outages and load shedding was higher. The driving impact of political stability was higher than the impacts of expected and unexpected shortages. A stable political system is necessary to develop feasible solutions.
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The article discusses and evaluates ‘social innovation’ projects (SIPs) in/for local governments and communities, that have been undertaken by the government, civil society organizations (CSOs), international donors such as UNDP/UNV ‘Social Innovation and Volunteerism in Uzbekistan’ Project with development assistance of UNDP and Partnership for Innovation (P4I) Project supported by USAID. It contributes to knowledge on the concept of social innovation through the yet missing critical analysis of social innovations in local governments and communities of post-Soviet Uzbekistan. Theoretical and empirical analysis is achieved by applying social practice and human development theories to theoretically formulate, and empirically apply the concept of social innovation.
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The textiles and garments (T&G) sector accounts for almost 50% of Pakistan's exports and is the largest component of manufacturing. T&G sector, because of recent favorable developments for the industry in Pakistan and the expected future changes in the international trade structure for the sector, has the potential to play an important role in expanding Pakistan's exports. In addition, garments manufacturing is the least energy and capital intensive industrial activity and thus resonates with Pakistan's resource endowment to generate economic growth and employment. Garment manufacturers have tried to overcome the constraints arising from the energy shortages and adverse security and country risk perceptions by investing in power generation, upgrading IT, developing design and R&D capability. Punjab Government's focus on garments as a central plank of its industrial strategy has also helped. However, this paper argues that for the sector to fully realize its potential, government policies that shape the incentive structure faced by the industry need to be realigned In this regard, the most important is Pakistan's import policies and customs procedures that discourage the import of materials such as synthetic yarn and fabric, technical textiles and specialized trimmings and accessories needed by exporters to move up the value chain, and a significant bump up in the growth trajectory will only take place if import policy and custom procedures are substantially reformed. This paper focuses on the following themes: First, structural changes and trends in T&G exports; second, the associated constraints to growth of the garments sector; and third, to highlight some of the steps taken by the industry leaders in terms of policy reforms and by firms, particularly with regards to managing resources to enhance competitiveness.
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The Pakistan textile industry contributes more than 60 percent (US $ 9.6 billion) to thecountry’s total exports. However, currently thisindustry is facing great decline in itsgrowth rate. The major reasons for this decline can be the global recession, internal securityconcerns, the high cost of production due to increase in the energy costs etc. Depreciationof Pakistani rupee that significantly raised the cost of imported inputs, rise ininflation rate,and high cost of financing has also effected seriously the growth in the textile industry. Asa result neither the buyers are able to visit frequently Pakistan nor are the exporters able totravel abroad for effectively marketing their products. With an in-depth investigation it wasfound that the Pakistan’s textile industry can once again be brought back on winning trackif government takes serious actions in removing or normalizing the above mentionedhurdles. Additionally, the government should provide subsidy to the textile industry,minimize the internal dispute among the exporters, withdraw the withholding and salestaxes etc. Purchasing new machinery or enhancing the quality of the existing machineryand introducing new technology can also be very useful in increasing the research &development (R & D) related activities that in the modern era are very important forincreasing the industrial growth of a country
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