The energy crisis is the major hurdle that the textile industry faces in its journey towards growth. The overall energy crisis in the country has many negative effects but the sector which has been affected very badly is the textile sector. Some companies have provided their industrial units with alternative energy sources like generators and solar energy etc. But they are normally quite costly or reduce precious oil reserves. The recent energy projects under the Pakistan-China Economic Corridor (CPEC) is considered a good sign for the industry since these projects will fulfill the energy requirements of our country. 

Law and order situation has affected almost every sector of our economy. Foreign and local investors in the wake of terrorist activities have found it difficult to invest in our country and most of them have shifted to Dubai, India, and Bangladesh. This is also the dilemma with the textile sector which has lost some precious investments over the years due to widespread terrorist activities in our country. The operations "Zarb-e-Azab" and "Radd-ul-Fasad" have brought a major improvement in the law and order in the country and an increase in foreign investment is expected in the coming years.

The constant supply of gas is also quite important for our textile sector but that has not been the case. The shortage of gas has tremendous negative effects on our textile sectors curtailing its growth. Exploration of energy resources should be prioritized as it will be a huge booster for the overall industrial growth of Pakistan.

There is no policy at the Governmental level for fixing the prices of yarn. This is another problem for the textile sector which has not been solved yet. This is affecting industries on one side and farmers on another side.

Our global competitors have explored new venues through research work but we are still employing the old methods for production in the textile industry. Due to this, our regional competitors are producing high-quality textile products compared to us. The introduction of hybrid seeds which can produce higher yield is also the need of the hour but it requires research work at a massive level with the support of governmental funds.

The majority of labor in our industry is untrained. This is another major deficit in our industrial force compared with regional competitors. Institutes need to be set up both at the government level and at the industry level to arm workers with modern skills.

Huge taxes on the import of modern machinery are blocking the modernization of our textile industry. The government should introduce schemes through which taxes are reduced on the importation of modern industrial machinery. This reduction in taxes will not only increase the output of industrial production but will also help our country earn much-needed foreign exchange reserves.

There is a dire need for subsidies in the wake of competition from the cheap Chinese products in the region. Government subsidies will help lower the cost of production and those cheap industrial products can be exported to the developed nations.

Brands are an important tool to boost sales but Pakistan lacks major industrial brands. We need to introduce our own national brands to make ourselves more competitive and to also earn profits for our workers instead of being exploited by international brands. 

The European Union and developing countries of other regions provide some tax incentives for imports from developing countries. We have not been able to exploit them for the benefits of our people. The GSP+ status given by  Europe is one example of such arrangments and it is now up to our industry to fully benefit from it.

In developing countries like Pakistan, investors have to face many bureaucratic hurdles and work which can be done in hours take months. It would be foolish to expect foreign in a country with such a system. 

The following steps should be taken to improve the overall situation of our industry and the textile industry in particular.

Our government needs to start building new dams to overcome this menace of energy shortage. Without energy no step for the betterment of the textile industry is viable. The government has already started working on the CPEC with the help of China through which the Chinese government is spending 34 US billion dollars only on energy projects.

Betterment of law and order is the most important pre-requisite along with energy supply. The government needs to provide full-proof to all the investors and especially foreign investors who are not accustomed to the environment.

Constant gas supply with suitable pressure is very important for the growth of the textile industry.

The government should fix yarn prices for each year in order to help the textile sector to grow and create more jobs. The fixation of the price will benefit the poor farmers the most.

Research and development are one of the most important components of growth in any industry. Government funds for this purpose can produce wonders if used properly.

The workforce should be trained in order to meet modern requirements.

The government should remove or at least reduce taxes on the import of modern equipment else our textile industry will continue with its old methods of production. With old methods of production, it would be impossible to expect our industry to compete with the developed world.

The government can play a major role in the growth of industry both vertically and horizontally. Young entrepreneurs should be provided with loans and subsidies to lure them towards this sector.

We should make and promote our own brands instead of selling our products to international brands.

The government should provide one-window solution to deal with the problems of the industry.