The backbone of Pakistan's industrial export economy faces challenges as the textile processing sector seeks government intervention to stabilise energy and water supplies to protect its foothold on the global stage.
According to the Business Recorder, Muhammad Rizwan Lakhani, Vice Chairman and Regional In-charge for the Karachi Region of the All Pakistan Textile Processing Mills Association (APTPMA), has formally urged the government to prioritize uninterrupted gas and water supplies for the textile processing industry. Business Recorder reported that the association also called for practical policy measures to reduce electricity tariffs to competitive levels in line with the industrial energy costs of regional competitor countries.
Background
Business Recorder noted that the textile processing industry is currently grappling with severe operational hurdles driven by persistent shortages of gas and water, alongside escalating electricity rates. According to the same publication, these unreliable utility supplies continually inflate production costs, making Pakistani products more expensive than those of competing countries in the international market. Furthermore, Business Recorder stated that rising global petroleum prices are driving up the prices of dyes and chemicals, further adding to the production costs of the textile processing industry and compounding the financial strain on industrial units.
Why it matters
As detailed by Business Recorder, the textile processing sector serves a vital role in driving national exports, generating employment, and fostering industrial development. The mounting financial pressures described by the association are putting additional financial pressure on the industry, making it increasingly difficult for industrialists to sustain production activities and fulfil international commitments.