Textile Mills in Faisalabad Face Crisis, Leading to Massive Job Losses and Urgent Calls for Government Intervention
The textile industry in Faisalabad is grappling with an unprecedented crisis as rising energy tariffs and high markup rates have led to the closure of over a hundred factories, including the prominent Sitara Textile Mills. The situation is dire, with operational textile mills slashing their production by up to 40%. A recent closure at Sitara Textile resulted in the loss of 900 jobs, reflecting the broader economic strain on the region.
Chaudhry Salamat Ali, a representative of the Pakistan Hosiery Manufacturers and Exporters Association, expressed deep concern over the unfolding crisis. He highlighted that between 150,000 and 200,000 workers in the city are now facing unemployment. Ali issued a stern warning that unless electricity and gas prices are reduced, coupled with a decrease in markup rates, more textile mills will inevitably shut down, exacerbating the already dire economic conditions.
The industry is facing additional challenges, with most factories ceasing to receive new export orders. Instead, they are focusing on fulfilling existing commitments, raising fears of more closures in the coming month. Khurram Mukhtar, representing the Pakistan Textile Exporters Association, stressed the importance of addressing these issues. He noted that global market conditions are currently favorable for increasing exports, especially as brands are shifting away from China and Bangladesh’s situation potentially driving more orders to Pakistan.
Mukhtar called on the government to urgently lower energy tariffs and reduce the markup rate to 14% to seize this opportunity. He also pointed out that the industry is burdened by higher taxes and delayed refunds, which are hampering its ability to operate efficiently. For Pakistan to stabilize its economy, there is an urgent need to enhance production capacity and improve infrastructure, Mukhtar emphasized.
