Pakistan’s share of textile and clothing exports in global trade has dropped from 2.2 per cent to 1.7 per cent. Prospective investors are reluctant to make new investment decisions due to the high cost of doing business and the textile industry has lost its technological advantage over its global and regional competitors.

The industry feels a five-year policy for textiles and clothing to attract long term investment will help. Another suggestion is an extension of the duty drawback scheme for five years and an increase in drawbacks every year by one per cent for garments (up to 12 per cent) and made-ups (up to ten per cent). Direct and indirect exporters hope for a long term finance facility for building infrastructure in addition to existing schemes for plant and machinery. Skill enhancement facilities in collaboration with industry and amendments in labor laws to encourage productivity and implementation of social standards are also awaited. Fairtrade, organic and/or responsible concepts in addition to complying with common sustainability standards and certification are seen as giving a competitive edge in Europe and easing market entry. Another area is value addition in producing artificial leather clothing. Another plan is to attract more buying houses to Pakistan.