Critical evaluation of the decline in the textile industry in Pakistan and recovery proposals

PurposeThe existing literature could not offer the causes of financial crises in the textilesector as well as what are the causes of the overall decline of the textile sector ofPakistan. This research aims to present recommendations toward a national policythat best suits the specific development needs of the struggling textile industry inPakistan, which will significantly contribute to economic growth, export increase, anda better life for a large demographic group in Pakistan represented in the textile workforce.MethodThe study had gathered responses from textile owners, senior management, andother stakeholders using the semi-structured interview method.ResultsFindings of this study reveal that the political government negligence, devaluation ofthe currency, low loans and borrowing opportunities for SMEs, high-interest rates,low focus to publish online financial reports, energy crises, weak law and ordersituation, obsolete technology and lack of human capital are some of the majorchallenges which negatively impacted the textile growth. As a result, the textilesector lost attraction and growth from both the national and international markets.Therefore, It is recommended that the textile sector and government officials mustcollaborate with the purpose to bring these advanced technologies such as industry4 practices, e-procurement, brick and click, online banking system, laser printing,digital printing, and 3D Printers.ImplicationThe textile sector owners and government must invest money in cheap energysources, the development of ICT infrastructure, and loans for small units. Thegovernment of Pakistan must invest money in developing ICT infrastructureespecially in SMEs which are unable to create big changes due to limitedemployees, vision and mission, and capital. By adopting an e-commerce model suchas brick and click, the textile sector can create online information as well as takeorders online without wasting time in meetings and handling the customersphysically.