Import of textile machinery imports declined by over 50% in fiscal year 2008-09 due to persistent crisis in the textile sector coupled with high cost of production and slow economic activity. Pakistan's textile industry is in crisis and is facing severe problems including high cost of doing business, rising competition in the world market and unclear policies, and these factors have halted new investment in the textile sector.

Since the start of last fiscal year, textile machinery import had been going down, despite government's efforts for the aggrandizing the textile sector growth and machinery import could not move up. Official statistics show that the country's textile machinery imports amounted to $211.973 million during last fiscal year against $438.345 million during fiscal year 2008, depicting a decline of $226.345 million, or 51.64%.

Importers said that the 'high cost of business' has dragged the country's textile industry into severe crisis, adding that industrialists are waiting for relief from government to salvage the industry.

New investment in the textile sector has also plunged and now textile industrialists are concentrating on modification of their existing plants to meet the production demands set by the international buyers.