Power loom sector reels under imports, rising costs
Power looms are displayed for sale after closure of businesses in Faisalabad.—Courtesy Council of Loom Owners Association • 100,000 workers lose jobs in Faisalabad amid closure of 40pc units • Loom owners blame cheaper Chinese yarn, grey cloth, finished textile products • Industry body seeks stronger Customs checks to curb ‘under-invoicing’ LAHORE: A large number of small power loom units have…
Faisalabad, known as the Manchester of Pakistan due to its textile and allied industries, is facing a severe crisis as its power loom sector reels under the impact of imports, rising costs, and job losses. Around 100,000 workers have lost their jobs following the closure of 40% of power loom units in the city. Textile industry representatives blame cheaper Chinese yarn, grey cloth, and finished textile products for the decline.
The industry body, the Council of Loom Owners Association, has called for stronger Customs checks to curb under-invoicing of textile products from China. They argue that the local power loom industry is no longer competitive in a market dominated by Chinese imports. Additionally, high utility bills and taxes have exacerbated the industry's woes.
The situation is particularly dire in Faisalabad and adjoining towns, a hub of power loom units and allied industries. Industry representatives have criticized the government for failing to protect the local industry from unfair competition and rising operational costs.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
