In a concerning development for Pakistan’s economy, over 1,600 textile factories have been forced to shut their doors within the past sixteen months, as disclosed by Interim Commerce Minister Dr. Gohar Ijaz.
The ramifications of this crisis are profound, affecting every facet of the textile industry, from ginning and weaving to spinning, processing, and garment manufacturing.
Minister Ijaz emphasized that numerous factories still operational are struggling to maintain reduced production levels due to adverse circumstances. Alarming statistics show that approximately 20 percent of the textile and clothing sector’s installed capacity has been negatively impacted during this period.
To address this dire situation, the government is on the verge of unveiling a strategic framework aimed at bolstering the industry. This initiative encompasses regional competitive energy pricing, working capital support, expedited refund payments, improved market access, and diversification of product offerings. It is expected that this policy announcement will help unlock the nation’s full production capacity potential.
Despite the challenges, there’s a glimmer of hope, with August 2023 exports reaching $2.36 billion, marking a 14.3 percent increase from the previous month. Minister Ijaz attributed this growth to the positive impact of the caretaker government’s policies, signaling a potential turnaround for the beleaguered textile sector.