KARACHI: Amid soaring energy costs, Pakistan’s industrial sector faces imminent collapse, exemplified by the recent closure announcement of a textile mill in Karachi.
Naz Textiles (Private) Ltd, in a statement on July 1, 2024, informed its employees that due to severe losses stemming from a lack of orders, operations would cease. Employees were notified that July 31 would mark their last day, with all dues to be settled by August 10.
Muhammad Javed Bilwani, Chief Coordinator of All Pakistan Textile Exporters Association, attributed the industrial decline to exorbitant fuel, electricity, and gas prices, according to Business Recorder. He issued a stark warning, predicting a significant drop in exports over the next six months, leading to further industrial closures amid the country’s economic turmoil.
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Bilwani emphasized the industry’s inability to function optimally under the burden of heavy taxes, citing a tax rate as high as 42%, coupled with delays in refund processing by the government.
He underscored widespread dissatisfaction within the business community and the general public alike, noting widespread discontent over the current economic conditions.
