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The power loom industry is extremely important to our country’s economy: employs a large number of people, helping to alleviate rural poverty, and it is a growing source of government revenue. The aim of this research is to identify the prospects and production efficiency of power loom industry in Pabna, Bangladesh. To assist the aim, this study has been based on primary data collected from 52 power loom units between October and November in 2019 with the help of a structured questionnaire and face-to-face interview method. In this study, an econometric model of Cobb-Douglas production has been employed to measure the factors affecting the sales revenue and the efficiency of production in power loom industry. The estimated results confirmed that main determinants of increasing the production efficiency and sales revenue of power loom industry are quality yarn, skilled labour, machine and electricity. The efficiency parameter is obtained 2.653.
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