Unraveling the Post Covid19 Challenges: A Comprehensive Study of Pakistan's Textile Industry

Abstract

Purpose

The study focuses on the textile industry in Pakistan, which has encountered numerous post-pandemic challenges impeding its growth and sustainability. This research aims to identify and evaluate the challenges of the textile industry's operations, financial stability, creditworthiness, and strategic decision-making.

Methods

By applying the Analytic Hierarchy Procedure (AHP), the study developed a close-ended questionnaire to collect data from the industry professionals, data was collected and analyzed using AHP statistical tools.

Results

The findings reveal that the textile industry in Pakistan faces significant challenges in the form of operational risks, financial risks, credit risks, and strategic risks. These challenges stem from factors such as political instability, currency volatility, uncertainties in the letter of credit processes, low sales turnover, liquidity management issues, unclear government policies, and regulatory concerns. Importantly, the research identifies credit risks as the most prominent challenge faced by the textile industry, specifically highlighting higher borrowing costs and liquidity management as major factors affecting industry performance.

Novelty

In Pakistan, many qualitative and quantitative studies have been conducted but hardly any were based on AHP analysis, which gives true insight of the area of the study.