1.3 Capital & Investment:

                          Finance is the biggest part of any business any industry. The capital in start and after that finance with the passage of time is very important for any industry.  Bank restrictions and a severe increase in rate of interest; increase the financial problems of textile industry. A decrease in value of rupee after global crises high rate of interest and all other problems of economy badly affect industry. Devaluation of currency creates stress in local market it is a reason to decrees in wealth of public property.

1.4 Research & Development:

                                    Pakistan dose not gave any much importance to research in any field. This is basic reason of underdevelopment of industry. Still there are no major arrangements for research projects even in many small and medium industries there is no proper system of record keeping. Due to lack of studies no ways to make production at lower cost was introduced.

1.5 Machinery & Engineering:

                                       Pakistan has not its own engineering and did not have any domestic textile machinery which is one of major cause of high cost of production. The other competitor of Pakistan has their own domestic machinery and they are getting perfect advantage from their technology on the other hand its b big problem for Pakistan. To compete with those countries by which we are importing machinery is too much difficult.

                                         Pakistan has not its own skilled and experienced engineers so it has to hand over industry to untrained internees or order engineers from abroad which will be much costly to pay them high wages. There is a lack of technical education and technical training in Pakistan. Due to lack of technical education we have to call engineer from aboard on high wages which is reason of increase in per unit production cost. Our new engineers are untrained internees it will be very dangerous to hand over industry to untrained staff. There is a lack of technology the technology that we are using is old and poor technology. Due to poor technology we are facing the problem of poor production quality. Quality of production is low as compare with other competitors due use of old machinery production is also inefficient and insufficient

1.6 Energy crisis:

                                   There are some other problems for Pakistan’s textile industry. In these days shortage of electricity and gas is big hurdle in progress of all sectors of economy and the sector which is most affected by this problem is textile industry. It causes high per unit price and production is not possible for small units they are fully damaged even medium units are also affected by this load shading. There are decrees of 30% in production due to load shading. According to a report of all Pakistan textile mills association load shading had affect 60 to 70 percent industry. An increase in per unit prices of electricity and gas is a big reason of increase in price. The position of Pakistan’s textile is badly affected due to this dramatic situation. Industry is badly tortured by half week Closure of gas and non schedule load shading. Recently government announced that the gas will be cut off till undecided time period.