Textiles seem to have bounced back as bank advances to the sector were record high in 2016.
The textile industry is the backbone of the economy and generates the highest export earnings. Yet it appears to have failed in coping with the new challenges that emerged in the global textile and fashion industry in recent years.
Under Textile Policy 2015-19, Rs64.15 billion will be spent to increase the exports of textile and clothing items from the existing $13bn to $26bn by 2019. Pakistan is the fourth largest producer of cotton in the world and holds the largest spinning capacity in Asia after China and India.
A recent report issued by the State Bank of Pakistan (SBP) reveals that year-on-year growth in textile sector advances has been Rs90bn in 2016 in contrast to the net retirement of Rs30bn in 2015.