Textiles Sector of Pakistan: The Challenge Beyond 2004

Naheed Zia Khan


The world is presently looking forward to embrace the greatest
moment of modern history of humankind, turn of the millennium. For
Pakistan, however, the millennium celebrations are going to be
accompanied by over half a century of missed opportunities and a serious
challenge ahead. The focus of this study is Pakistan’s status as a
‘single commodity’ country and the life after 2004 in a post- Multifibre
Arrangement (MFA) era. This work intends to use the hindsight to argue
that MFA, a cat’s cradle of bilateral textile import quotas, was a
blessing in disguise for the value added textiles sector of Pakistan.
And the difficulties beyond 2004, when all the quotas have gone, should
not be underestimated in a bipolar (NAFTA and the EU) and deregulated
world economy . The analysis is carried out in four parts. Part I
highlights the economic significance of Pakistan’s textiles industry by
briefly analysing its contribution to different sectors of her economy.
Part II presents the past, present and future scenario of international
trade in Textiles and Clothing (T&C). The present situation of
Pakistan’s textiles industry along with its foreign exchange generating
performance in the past is assessed in Part III. Finally, Part IV
analyses the prospects and challenges faced by the T&C sector of

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DOI: https://doi.org/10.30541/v37i4IIpp.595-619


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