The All Pakistan Textile Mills Association (APTMA) has raised alarm over the closure of 144 textile mills nationwide, citing soaring energy costs, heavy taxation, and operational challenges. APTMA Chairman Kamran Arshad revealed that the rising price of electricity and gas has made it increasingly difficult for mills to sustain operations, forcing many to shut down temporarily or permanently.
According to Arshad, the recent tariff hikes for industrial power have exacerbated the crisis. He stressed that for the textile industry to remain viable, electricity prices must drop from Rs 35 per unit to Rs 25 per unit. The high energy costs have already led to a 19% decline in power consumption in November, reflecting the reduced operational capacity of mills. The impact has also been felt in exports, with textile shipments slowing down due to limited production.
Apart from energy issues, mill owners are struggling with high interest rates and disruptions caused by recent transport strikes, which have delayed shipments and increased logistical costs. These challenges, combined with heavy taxation, have intensified financial strain on textile businesses, a sector that contributes significantly to Pakistan’s economy and employment.
Industry experts warn that if the current situation persists, more mills could face closure, threatening jobs and weakening Pakistan’s textile exports, which are a major source of foreign exchange. APTMA has called on the government to intervene urgently by reducing industrial power tariffs, offering tax relief, and addressing logistical challenges to stabilize the sector.
The closure of 144 textile mills underscores the pressing need for policy reforms to protect one of Pakistan’s most important industries and ensure its long-term sustainability. Without immediate action, the economic and social impact could be severe.
