More than 1600 Textile Mills shut down across Pakistan in last one year
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Over the past sixteen months, more than 1,600 textile factories in the country have ceased operations, as revealed by Interim Commerce Minister Dr. Gohar Ijaz. This alarming trend has cast a shadow across the entire textile industry, encompassing every aspect of its value chain, from ginning and weaving to spinning, processing, and garment manufacturing. Additionally, many of the remaining industries are grappling with reduced production levels, further exacerbating the sector's challenges.
Dr. Gohar Ijaz underscored that approximately 20 percent of the textile and clothing sector's total installed capacity has been negatively affected during this 16-month period. The ramifications of this decline in production capacity have been felt across the industry, affecting employment, exports, and overall economic stability.
In response to these issues, the commerce minister announced that the government is in the final stages of developing a comprehensive strategic framework. This framework aims to address the challenges faced by the textile sector by providing solutions such as competitive energy pricing at a regional level, working capital support, expedited refund payments, improved market access, and diversification of product offerings. The introduction of these policies is expected to revitalize the textile industry and unlock its full production potential within the country.
The latest statistics from the Pakistan Bureau of Statistics (PBS) revealed that in August 2023, the country's exports stood at $2.36 billion, representing a 4.8 percent decrease compared to the $2.48 billion recorded in August 2022. However, there was a notable 14.3 percent increase compared to the $2.07 billion in exports from the previous month. Dr. Gohar Ijaz attributed this month-on-month growth to the positive impact of the policies implemented by the caretaker government, which came into office on August 17.
Furthermore, the commerce minister announced that the Federal Board of Revenue (FBR) would be transferring Rs. 31 to exporters' accounts shortly. This payment would be followed by additional refund payments aimed at addressing the working capital challenges faced by exporters, providing some relief to the struggling industry. These developments are critical steps towards revitalizing Pakistan's textile sector and ensuring its long-term sustainability
