QUALITY RELATED ISSUES AND THEIR EFFECTS ON RETURNS OF PAKISTAN TEXTILE

Textile sector is the mainstay of Pakistan’s economy. Its contribution towards GDP, exports and Manufactured Value Added (MVA) is highest. It is the biggest employer of manufacturing labor force in Pakistan at 39%. More than 60% of all exports from Pakistan come from textile related products and its contribution towards GDP is 9.5%. However Pakistan Textile Industry is not providing the returns at par with its potential. Main contributing reasons for this below par performance are usually contributed to external to industry factors i.e. law and order situation, energy crisis, lack of foreign direct investment, unfavorable policies and taxations, power tariff, elimination of quotas etc. Impact of these has remained very significant. However their also are internal issues which were in the control of the industry and almost equally have contributed towards this poor performance. This paper looks into these issues and studies their impact on returns through growth and profitability. Qualitative and Quantitative Study was conducted in 30 textile firms of varying size and capacity. Internal, external and mutual i.e. supply chain issues were studied and salient are being reported. Findings about significant factors are shared with a suggested optimal course of action.