The textile industry in Faisalabad, a major center for Pakistan’s textile production, is grappling with a severe crisis as more than 100 factories, including the well-known Sitara Textile Mills, have been forced to close their doors. This wave of shutdowns is driven by skyrocketing energy tariffs and high markup rates.
The closures have resulted in the loss of 150,000 to 200,000 jobs, with many more positions at risk if the situation continues to deteriorate. Operational mills are already scaling back production by up to 40% due to the financial strain.
Industry leaders are warning of further setbacks unless urgent government intervention is implemented. There are calls for a reduction in energy and gas prices and a decrease in markup rates to a single digit to prevent additional closures and stabilize the sector.
