Pakistan's declining economy was the concern due to imports exceeding exports, and the government's inconsistent policies are directly impacting the textile industry in a session, during first-ever event Economy Festival (EconFest) in Lahore.

The two-day event featured over 100 distinguished speakers who discussed real issues affecting Pakistan's economy in 34 sessions.

One of the sessions focused on sustainable growth and the role of the textile sector in Pakistan's economy. During the session, various topics were discussed, including Pakistan's productivity challenges, agricultural productivity, and the challenge of climate change. Speakers also highlighted the textile industry's importance in the country's economy and its declining sustainable growth due to political instability and inefficient policies.

It was urged that the government should provide support to the textile industry in the form of Regional Competitive Energy Tariff (RCETs) instead of 6% duty drawbacks on exports and local taxes, the government's provision of an RCET of 7.5 cents to the textile industry resulted in an investment of $5 billion, and the textile exports rose from $12.3 billion to $19.3 billion in 2022. However, the RCET was withdrawn, resulting in the textile exports declining to $1.2 billion a month.

Pakistan needs to keep its exchange rate in line with the demand and supply of dollars, as devaluing the currency would bring imported inflation, leading to high-interest rates, a major hurdle for the government.

The Pakistan Institute of Development Economics (PIDE), in partnership with the Research for Social Transformation & Advancement (RASTA) program and the Pakistan Society of Development Economists (PSDE) organised the event.