Around 40% of Faisalabad’s looms have reportedly shut down, resulting in the loss of more than 100,000 jobs, as textile businesses struggle with rising electricity costs and competition from imported Chinese products.
According to industry representatives, the closure of a large number of looms has created serious difficulties for workers and small textile businesses in Faisalabad, one of Pakistan’s major textile production centers.
Manufacturers say high electricity prices have increased production costs and made it difficult for local businesses to compete in domestic and international markets. Rising operating expenses have placed additional pressure on loom owners, particularly smaller units with limited financial resources.
Industry representatives have also raised concerns about increasing imports of Chinese textile products. They argue that cheaper imported goods are putting pressure on locally manufactured products and reducing demand for goods produced by Pakistani units.
The situation has affected workers who depend on the textile sector for their livelihoods. With thousands of small and medium-sized units facing financial pressure, further closures could put additional jobs at risk.
Faisalabad’s textile industry is considered an important part of Pakistan’s manufacturing sector, supporting employment and contributing to exports. Industry stakeholders have therefore called for measures to reduce energy costs, address unfair competition from imports and support struggling textile units.
The reported shutdowns highlight the wider challenges facing Pakistan’s textile sector, particularly as manufacturers deal with high energy costs, weak competitiveness and changing market conditions.
