The textile industry is one of the most leading industries of Pakistan, which perform an outstanding performance, during the covid 19 pandemic the industry suffered but become successful to get recover from shock, the share of the textile industry in GDP is remarkable. The textile industry is the only industry that attracts foreign customers also in the pandemic situation. To enhance the performance in these fields countries introduced different strategies. The study is conducted to analyze how much the given incentives play a significant role to enhance the performance of this sector Using Difference In Difference approach, which is used to evaluate the policy performance of the targeted sector, the panel data is taken from a period of 2000-2020, of textile firms. The results indicate that LTFF is working effectively to increase Exports, and RCET is a significantly impact on increasing exports by reducing production cost, while the DLTL policy shows no impact to boost exports of the textile sector. Supervisor:- Dr Ahmad Waqar Qasim