Pakistan textile giant GFIL halts production amidst cotton crisis

Ghazi Fabrics International Limited (GFIL), a leading Pakistani textile exporter, has announced a temporary halt to production activities at its weaving unit. The decision, attributed to the country's deteriorating economic conditions and a severe shortage of quality cotton, highlights the deepening crisis in Pakistan's textile industry.

The company's notice to the Pakistan Stock Exchange (PSX) underscores the challenges faced by the sector. Soaring energy costs and the unavailability of affordable, high-quality cotton have forced the company to take this drastic step.

Pakistan's textile industry, a major contributor to the country's economy, is heavily reliant on cotton. However, a decline in domestic cotton production, coupled with rising import costs, has put immense pressure on the sector. Experts warn that the crisis could further exacerbate Pakistan's balance-of-payments issues, as the country grapples with dwindling foreign exchange reserves and a mounting external debt burden. The government is urged to take immediate measures to address the cotton shortage and provide relief to the struggling textile industry.