1,600+ Textile Factories Closed in Pakistan in Past 16 Months

Over the last sixteen months, a staggering number of 1,600 textile factories in Pakistan have shuttered their operations. This unfortunate situation has cast a shadow over the entire textile industry, encompassing activities such as ginning, weaving, spinning, processing, and garment manufacturing. Additionally, many of the remaining factories are not functioning at their full capacity.

Approximately 20 percent of the textile and clothing sector’s overall production capability has been adversely impacted during this period.

In response to this critical issue, the government is actively formulating a comprehensive plan aimed at addressing these challenges. The plan’s objectives include providing more favorable energy prices, extending financial support for operational needs, expediting refunds, enhancing access to markets, and promoting diversification into different product lines. These strategic changes are envisioned to facilitate improved efficiency and performance within Pakistan’s manufacturing facilities.

As of August 2023, Pakistan’s exports amounted to $2.36 billion, representing a 4.8 percent decline compared to August 2022 but a notable 14.3 percent increase over the previous month when exports stood at $2.07 billion.

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