ISLAMABAD: Pakistan’s largest export sector, textile, is facing a severe crisis due to expensive electricity in the country. Out of 568 textile mills, 187 have ceased operations, highlighting the dire state of the industry.
Punjab, the country’s largest province and a major hub for textile production, was severely hit due to the crisis.
Of the 187 closed mills, 147 are located in Punjab, followed by 54 in Sindh and Balochistan, and 6 in Khyber Pakhtunkhwa.
The closures include man-made fiber, polyester, and waste mills. In Punjab, key districts have suffered significant losses: 47 mills have shut down in Kasur, 33 in Multan, 31 in Faisalabad, 17 in Sahiwal, and 11 in Sheikhupura.
Sources attribute the crisis to rising electricity costs and Pakistan’s challenging economic conditions, which have made it increasingly difficult for textile mills to sustain operations.
The textile sector, a backbone of Pakistan’s exports, is now in urgent need of government intervention to address these critical issues and prevent further closures.
Despite these challenges, the Pakistan Bureau of Statistics (PBS) reported a 9.67% growth in textile exports during the first half of FY2024-25, reaching $9.084 billion compared to $8.283 billion in the same period last year. However, the industry’s growth trajectory now faces significant risks as mills continue to shut down.
The All Pakistan Textile Mills Association (APTMA) has called for immediate government intervention, emphasizing the need to restore a level playing field for local inputs and ensure timely, complete refunds for exporters. APTMA has warned that without swift action, the backbone of Pakistan’s exports may suffer further setbacks, jeopardizing the country’s economic stability.
