Over 20,000 powerlooms shut in Multan as high tariffs hit 500,000 jobs

Rising electricity tariffs have pushed Multan’s powerloom sector into deeper distress, with more than 20,000 units shutting down over the past two years and hundreds of thousands of jobs coming under threat, industry representatives said.

Workers associated with the sector said more than 500,000 people depend on an estimated 100,000 to 150,000 powerlooms in the city. 

According to a report by The News, industry participants said electricity tariffs in Pakistan are now almost double those in competing regional markets such as India, Bangladesh and Vietnam, undermining export competitiveness. They estimated that the resulting loss of orders has contributed to export losses of $4–5 billion, while widespread shutdowns have increased unemployment among low-skilled workers.

The sector saw limited relief in late 2025 when electricity tariffs were reduced by more than Rs9 per unit to about Rs39.64 following improved economic indicators and renegotiation of independent power producer agreements. However, industry representatives said the relief was insufficient to offset broader policy constraints.

The All Pakistan Powerlooms Association has warned of protest action if what it described as restrictive power policies are not withdrawn. Addressing a meeting of the association, central president Abdul Khaliq Qandil Ansari criticised measures including the suspension of electricity connections up to B1 (8 kW), closure of net-metering connections, restrictions on load enhancement and refusal to increase transformer loads under the B2 category.

He said these steps have created operational difficulties for small industrialists, adding that minor increases in sanctioned load have resulted in disproportionately high electricity bills. According to the association, investments worth several billion rupees are at risk due to the current framework.