Pakistan's textile industry faces mounting challenges.

The Pakistan textile industry is facing a severe crisis, with exports falling short of their potential by a staggering $9 billion. A high-level delegation from the All Pakistan Textile Mills Association (APTMA) met government officials to discuss the pressing issues hindering the industry's growth.

The delegation highlighted the government's agreement with the IMF to discontinue gas supply to captive power plants (CPPs) by December 2024. This move threatens to cripple textile mills that rely on these plants for their energy needs. The high cost of electricity from the national grid makes it unfeasible for many mills to switch, potentially leading to closures and job losses.

Another major concern is the withdrawal of zero-rating for local supplies under the Export Facilitation Scheme. This has forced exporters to rely on imported raw materials, increasing costs and straining liquidity. The spinning sector has been particularly hard hit, with yarn production plummeting by 41 per cent and cotton yarn imports surging by 435 per cent. Over 40 per cent of spinning units have been forced to close, resulting in widespread unemployment.

The APTMA urged the government to reconsider its policies on gas supply and tax exemptions to address these critical challenges. Failure to do so could have devastating consequences for the textile industry, a vital sector of Pakistan's economy.