Altman's Z-score Model (1968) is the Strongest Predictor of the bankruptcy and after its development many studies have been conducted to assess the financial viability of the corporate sector by using this model. This study used Z-Score model and Current Ratio to measure the Financial Failure of 22 selected Textile Industries of Pakistan. Results showed that Z-Score and current ratio are the good tools to assess the financial health of the textile companies listed in KSE. This study also revealed that financial distressed companies are also present in textile sector. Introduction Now a days, Bankruptcy prediction plays vital role in assessing the financial viability of the firms. Prediction of bankruptcy is one of challenging tasks for every sort of organization in all over the world. The Bankruptcy refers to a company ceasing its operations following its inability to make a profit or to bring it enough revenue to cover its expenses. Argenti defined the concept of failure as " incapability of a firm to survive. " (Argenti, 2003). Bibealt (1982) defines business failure from economic stand points as " a situation whereby the realized rate of return on investment capital is considerably and repeatedly lower than prevailing rates on similar investments. " Bankruptcy prediction has become a matter of great concern for every organization as well as for organization's stakeholders. Financial Statements users are interested in determining financial viability of companies for investment and other purposes. (Fawad, Iqtidar, Shakir, & Madad, 2014). Financial Viability is also checked by shareholder to know either firm has ability to pay off their expected rate of return. Firm's Creditors are interested to know the firm's debt paying ability. Firm's Performance assessment is also a matter of interest for other firms dealing with them. The purpose of this paper to check the predicting ability of Z-Score and Current Ratio by implementing both on Textile Sector and is to analyze the financial situation of Textile Sector. Z-Score Model is developed by Altman in 1968 which predicts bankruptcy in advance with the help of five specific ratios under multiple discriminant analysis. Pakistan textile sector is a key contributor to the economic growth in terms of Export and employment. Pakistan grips the distinction of being the world's 4 th largest producer of cotton as well as 3 rd largest user in the world and 8 th largest exporter of textile goods in Asia. Textile Sector is considered as the mainstay of the economy. It has usually, after agriculture, being the only Sector that has produced massive employment for both skilled and unskilled labor. The textile business contributes to be second largest employment creating sector of Pakistan. For the Economic growth of Pakistan, Textile sector of the country played a dynamic part for a long time, the core objective of any country either it is a developed or a developing country should be to broaden the sector which contributes such a huge portion in export and GDP as well as the generation of tax revenue and provides employment to the manpower of the country.