This study shows the link between the working capital management and profitability with the indirect effect of management policies effectiveness under the context of Pakistan textile industry for which data have been taken from period 2006-2012. This study solve the problem related market share of textile firms' of Pakistan in the global market while the demand for textile products are increasing day by day. The convenience sampling technique is used for the selection of sample of our study which consists of 9 textile firms. For data analysis we have adopted the methodology of Hayajneh and Yassine (2011) which they have used to determine the WC performance of Jordanian manufacturing firms and devise the similar model for profitability. The result shows that the WCM and Profitability has a negative relationship with each other. While, the effective management policies have positive impact on the relationship between WCM and Profitability. This study is useful for financial managers for getting the better economic position and for attaining the short term miles stones of a firm as well as long term goals of business.