Export Factors Impact Analysis on Textile Industry

摘要

Textile industry contributes 57 percent of total export volumes and 8.5 of the GDP ofPakistan. Government also extended export package and preferential interest rates for working capitalexigencies and capital expenditures related to the industry but target never achieved. Though textile policyhas aggressive targets but it seems that the policy makers failed to address the real problem that eventuallyresulted failure of achieving it. On the contrary present government aggressively devaluated the localcurrency by not taking more loans for controlling exchange rate artificially. This resulted Pakistaniexportable products cheaper in international market which attracted future orders in return. But on theother hand, interest rates increased almost double which increased finance cost accordingly. Due to massivedevaluation, cost of producing energy increased together with cost of spare parts for maintenance anddyeing chemical for value added products. Therefore, this research is focused to see the impact of factorsthat could affect the exports either way positive or negative.