PYMA warns, high costs cripple textile industry

Pakistan's textile industry is on the verge of collapse due to high production costs, according to the Pakistan Yarn Merchants Association (PYMA). The association blames expensive electricity rates for crippling the industry, forcing mill closures and unemployment.

PYMA chairman Shams Qaiser warned of further shutdowns and protests if the government doesn't intervene. He claims current utility tariffs are the highest in the region, making Pakistani textiles uncompetitive in the global market.

Qaiser reports that already, 29 per cent of spinning mills and 20 per cent of knitting mills have closed. Additionally, over a third of the country's water jet machines are idle. These closures have resulted in mass unemployment, with an estimated 150,000 textile workers losing their jobs in recent months.

PYMA demands immediate reduction in electricity rates to save the industry and Pakistan's export targets. Senior chairman Sohail Nisar warns of a looming energy crisis and urges the government to renegotiate contracts with Independent Power Producers (IPPs) to bring down costs.

With the textile industry being a backbone of Pakistan's economy, PYMA emphasizes that the government's actions will significantly impact the nation's future.