Faisalabad: Faisalabad is reeling from economic strain as over 100 factories, including the prominent Sitara Textile Mills, have closed due to skyrocketing energy costs and high interest rates. This surge in expenses has forced many textile mills to cut their production by up to 40%. Recently, Sitara Textile’s closure of a unit led to 900 employees losing their jobs. Chaudhry Salamat Ali from the Pakistan Hosiery Manufacturers and Exporters Association revealed that these closures have left between 150,000 and 200,000 workers unemployed in the city. He warns that unless the government reduces electricity and gas prices and brings down markup rates to single digits, more mills may shut down.
Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association, believes there is potential for growth as global brands move away from China. He urges the government to lower energy tariffs and cut the markup rate to 14% to seize this opportunity. Mukhtar also criticized increased taxes and delays in refunds, noting that Pakistan’s exports totaled $1.2 billion last month but could have reached $2 billion under better conditions. He called for urgent government action to support the industry and safeguard jobs.
