Because the price of electricity went up by 26% for basic usage and 18% for every three months, the textile industry is facing a tougher situation. The Central Power Purchasing Agency’s suggestion to raise the tariff by an additional Rs 7.13 due to fuel adjustments has added to the industry’s worries.

The Pakistan Textile Exporters Association reports that because of the energy crisis, 50 spinning mills, 10 processing mills, and numerous weaving units have shut down. Even the textile mills still running are starting to close down.

Textile exporters are already struggling with financial issues due to delayed refunds and increased production costs caused by the rupee depreciation and high bank interest rates. This has made Pakistan less competitive in the international market, leading to fewer export orders.

Additionally, the lack of reforms in the energy sector is frustrating the industry. Industrialists emphasize the need to provide electricity and gas at competitive rates, especially to the textile sector, to maintain economic stability. They also stress the importance of structural reforms to attract new investments and promote industrialization, ultimately reducing production costs and sustaining economic growth.

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