Prospects for strong growth in Pakistan's T&C exports remain favorable if productivity gains are sustained and the value-added content of export increases. Pakistan's textile industry has up-to-date technology, and easy access to homegrown premium-quality cotton.
Policies should help enhance the industry's responsiveness to market signals through improvements in the overall business climate, increases in the efficiency of the production process and enhancements in product quality.
Across-the-board export subsidy schemes run counter to this objective, as they tend to delay the allocation of resources toward the most competitive sub-sectors in the T&C industry.
International Monetary Fund
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