Due to rising expenses and ineffective policies, 187 Punjabi textile mills have closed. This decline might lead to widespread unemployment and dwindling exports, which make up a large part of Pakistan’s economy, say experts.
Dr. Mehmood Ul Hassan Khan, a prominent economist, said Punjab’s textile industry, which accounts for 60% of exports and 8.5% of GDP, needs reform. These closures are caused by high energy costs, obsolete production methods, and unpredictable cotton yield. Electricity prices of Rs. 38-40 per unit make operations unviable, putting industrial people out of work and increasing unemployment.
Experts and industry leaders, notably the All Pakistan Textile Mills Association (APTMA), have recommended many methods to resuscitate the sector. They propose textile-specific development banks, R&D centers, and separate tax courts. They emphasize updating technology, offering energy subsidies, and researching alternate production methods like automated looms and computer-aided systems.
Following India, Vietnam, and Bangladesh’s textile industry strategies could help reposition Pakistan’s textile sector, says Dr. Khan. Providing low-interest financing, financial incentives for technology upgrades, and stable energy supply are crucial. To prevent future industrial collapse, shuttered textile facilities must not be converted into real estate.
Experts suggest taking advantage of international collaboration prospects like the China-Pakistan Economic Corridor. Joint partnerships, such as a “Pak-China Textile and Garment City” in Faisalabad, might boost sector investment and modernization.
This textile crisis shows that Pakistan needs extensive reforms and tailored measures to save the industry, protect livelihoods, and stabilize the economy. Without prompt action, the economy could suffer.
