Abstract:
The textile sector of Pakistan has been considered as a backbone of the economy. Once this sector was known for its good quality products and regarded as the most efficient and technically advanced sector across the globe. However, in the last two decades, it has gradually lost its exports leading to the sector's decline. Many studies have been conducted merely highlighting the problems faced by textile sector of Pakistan. Nonetheless, there is a dearth of literature on the analysis of cotton value chain in this sector and no study has addressed development of textile cluster of Sindh province through the special perspective of industrial cluster theories.Therefore, current study address this gap by indentifying the problems faced by three main sectors of Cotton Value Chain (CVC) and the missing components of cluster through the lens of Porter's cluster theory and diamond model. Once the problems and missing components are identified in cotton production, cotton ginning and textile sector, this study attempts to draw recommendations for the development of these clusters of CVC through the lens of Porter's cluster theory and diamond model in order to enhance its performance. This research adopts Case Study Methodology translating in to mixed method whereby survey questionnaire is employed to collect data from owners/managers of cotton ginning mills and textile industries. Simultaneously, in depth interviews have been conducted from land owners, farmers, sector associations and respective support institutions (e.g. governmental institutions, related universities and training institutions). The findings of this study reveal that entire CVC is prone to multiple challenges. The textile industry of Sindh province has led to decline due to many reasons such as cost of doing business, energy crisis, outdated technology, internal security concern and partial government support. Government policy for cluster development is absent. At the end, the policy recommendations are drawn to boost the performance of textile sector through the development of clusters.
Keywords:
Sindh
,
Porters Cluster Theory
,
Textile Industrial Cluster Development
,
Cotton Value Chain
,
Diamond Model