Pakistan's cotton, textile, and apparel industries are key sectors of the nation's economy; their performance can contribute to either a rise or fall in poverty. These vital industries have faced a variety of challenges and opportunities in recent years, including world cotton price instability, liberalization of the multilateral clothing and textile trade, and sharp swings in the Pakistani macroeconomic situation. Using a computable general equilibrium (CGE) model and drawing on a national survey of Pakistani households, the authors of this report evaluate the consequences of several recent or prospective economic changes on Pakistan's cotton, textile, and apparel industries and poverty levels. The economic changes include an increased inflow of foreign capital, higher world cotton and textile prices, government subsidization of the textile industry, increased productivity in the cotton and textile sectors, and other possible developments. By presenting these scenarios, the report offers policymakers and analysts a guide to anticipating and shaping the future of economic growth and poverty reduction in Pakistan.

Survey of the development of the cotton branch of the textile industry in Pakistan - covers production costs, labour productivity, input output, capital, profit, price trends, supply and demand, trade, etc., and includes extensive statistical tables.

In developing, predominantly agricultural economies like Pakistan, the importance of industry lies in the additional employment, foreign exchange earning through exportable goods and improve balance of payments by substituting the imports. This development stimulates then other sectors of the economy. The main problem undertaken in this study is to identify that Pakistan being an agricultural country, most of its industry is agro based. As such cotton being its main cash crop and cotton textiles being its major industry, have been of paramount importance to its economy. It contributes 60% to 65% of annual export earnings and 9% of the GNP. It is however observed that not much serious attention has been paid over the years on the production and exports of high-value added products. This study has examined those factors which have limited the desired growth in production and export of high-value added products. Through this study an attempt is made to focus upon comparative and competitive advantages in the production of cotton textiles and explore the possibilities of switching over to high-value added goods.

Cotton is the most important cash crop in Pakistan and cotton products export account for 55 percent of all foreign exchange earnings of the country. Nearly 26 percent of farmers grow cot-ton, and over 15 percent of total cultivated area is devoted to this crop, with production pri-marily in two provinces. Approximately 65 percent of Pakistan’s cotton is grown in Punjab, which has dry conditions, and the rest is grown in Sindh, which has a more humid climate, with negligible area under cotton in Khyber Pakhtunkhwa and Balochistan. Cotton production ac-counts for 4.5 percent of the value added in AgGDP and 0.8 per cent of GDP. It serves as the raw material for the textile industry, the country’s largest agro-industrial sector , employs 17 per-cent, earns 60 percent of foreign exchange and contributes 8.5 percent to GDP.

This Book Analyses The Dynamics Of India`S And Pakistan`S T & C Exports To The European Union, Maintains That The Two Countries Export Potential To The Eu Is Not Fully Tapped, And Identifies The Product In Which Potential Exists For Future Growth.