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Over 50,000 power looms have shut down in Pakistan’s Faisalabad district in the last two years, leaving tens of thousands of workers unemployed due to skyrocketing electricity prices, it emerged on Tuesday.
Faisalabad, the heart of Pakistan’s textile industry, is home to 125,000 power looms in its industrial zone and produces nearly 91% of the country’s grey cloth.
During an interview with Arab News, Saeed Ahmad, deputy secretary of the All Pakistan Cotton Power Looms Association, said that more than 200,000 workers have lost their jobs as a result of these closures, with the remaining industry teetering on the brink of collapse due to inefficient government policies.
Ahmad highlighted the sharp rise in electricity costs as the primary driver of the crisis, with per-unit rates increasing from Rs19 to Rs55 over the past two years, compounded by additional taxes.
“This is a small-scale industry, and people cannot afford to pay millions in electricity bills each month,” he said, adding that rising interest rates and other business costs have further strained the sector.
While some power loom owners have shifted to solar energy to sustain operations, Ahmad argued that the switch is unaffordable for many.
“You can’t completely disconnect from the national grid because solar systems don’t function effectively on cloudy days,” he added.
