In a dire turn of events, Pakistan’s textile industry has witnessed a staggering loss of employment, with approximately 7 million individuals being laid off from both the textile and allied sectors. The crisis has been attributed to plummeting exports and a deepening economic turmoil that has sent shockwaves through the industry.
The unsettling revelation emerged during a press conference held on Monday by representatives of various textile associations. Expressing their concern over the mounting challenges faced by textile producers and exporters, they blamed the reason on the absence of a cohesive governmental policy to mitigate the crises afflicting the sector. The repercussions have been severe, with many businesses on the brink of closure and a significant number of units having already ceased operations. This dire situation has prompted several others to either reduce production or relocate overseas.
Sources present at the press conference highlighted a series of critical issues plaguing the textile industry. Foremost among these concerns is the acute shortage of essential raw materials and accessories, which has severely hindered production capabilities. Moreover, a concerning trend has emerged in the denial of letters of credit, even for amounts as meager as $5,000. This unexpected hurdle has caused disruptions to the flow of export orders, each valued at a substantial $500,000 per consignment. As a result, production schedules have been thrown into disarray, leading to prolonged delays in fulfilling orders and adversely impacting the industry’s credibility.