Power Sector Crisis Leads to 100,000 Jobs Lost

News Desk

LAHORE: The power loom sector in Pakistan is reeling from a severe crisis as approximately 100,000 workers have lost their jobs due to the closure of 40% of small power loom units, particularly in Faisalabad, a key hub for textile production.

The industry is grappling with rising imports of cheaper yarn and grey cloth from China, coupled with escalating utility bills and taxes.

Industry insiders attribute the downturn to the influx of low-cost Chinese textiles, which have made it increasingly difficult for local manufacturers to compete.

The Council of Loom Owners Association has called for stronger Customs checks to combat ‘under-invoicing’ practices that further undermine local businesses.

The situation has led to significant economic distress in Faisalabad and surrounding areas, where many families depend on the textile sector for their livelihoods.

This crisis not only threatens the jobs of thousands but also poses broader implications for Pakistan’s economy, which is already facing challenges from inflation and a depreciating currency.

The textile industry, a cornerstone of the national economy, is crucial for exports and employment, and its decline could have ripple effects across various sectors.

In response to the ongoing crisis, industry representatives are expected to meet with government officials to discuss potential solutions, including policy adjustments and support measures for local manufacturers. The urgency of the situation has prompted calls for immediate action to safeguard the livelihoods of those affected and to stabilize the industry.