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This research study has an effort to capture the behavior of trade credit (TC) supply and demand in non-financial firms of Pakistan and explain the behavior of trade credit on supply and demand sides. Therefore, we selected the textile sector of Pakistan and the data used in this research is related to the firms listed on Karachi Stock Exchange (KSE).The working is applied to the Panel data which consisted of time series as well as the cross-sectional data of the textile sector in Pakistan from the year 2006-12.