By The textile sector in Pakistan is facing a severe crisis as 100 textile units have been forced to shut down due to the government’s failure to implement efficient policies. The industry, which is one of the country’s largest sources of employment and foreign exchange, has been struggling with rising costs, lack of subsidies, and inconsistent energy supplies. The closure of these units has led to massive layoffs, threatening the livelihoods of thousands of workers and further weakening the already struggling economy.
A significant factor contributing to this crisis is the relentless increase in energy tariffs. Electricity prices have surged by 12% per unit, making production costs unsustainable for many textile manufacturers. Additionally, the gas tariff has skyrocketed from Rs. 1,100 to Rs. 3,500 per MMBtu, putting an unbearable financial strain on industries that heavily rely on gas for operations.
These sharp increases have made Pakistani textile products less competitive in international markets, leading to reduced exports and declining revenue for businesses. Industry experts have repeatedly urged the government to introduce relief measures such as energy subsidies, reduced taxes, and long-term policy stability.
Without immediate intervention, more textile units could face closure, further damaging the economy and increasing unemployment. The government must address these challenges to restore investor confidence, protect industrial growth, and safeguard the livelihoods of millions dependent on the textile sector.
