The Pakistan Yarn Merchants Association (PYMA) has urged the federal government to implement immediate measures to reduce the cost of doing business in the domestic industry.

Shams Qaiser, Chairman, PYMA, warns, failure on the part of the government to meet these demands may result in the gradual shutting down of the industry. 

The increase in power tariffs by the government has made it impossible for the industry to continue operating, he alleges.

Further, high production costs y have led to the closure of approximately 29 per cent of spinning mills and 20 per cent of knitting mills across the country, adds Qaiser. Additionally, out of 880,000 water jet machines, 32 per cent have ceased operations, he notes.

The closure of these mills will not only increase unemployment rates but also adversely affect the country’s export targets for the fiscal year, emphasises Qaiser. 

He reveals, in the past few months, around 150,000 textile industry workers have lost their jobs. 

To support the domestic industry, the government needs to reduce electricity rates, Qaiser urges.

Sohail Nisar, Senior Chairman, also highlights, the looming energy crisis as a significant threat to the industrial sector. Despite a demand for 22,000 MW, the nation is currently paying for 45,000 MW, with industries and the general public bearing the cost of underutilised capacity, he adds.

Skyrocketing capacity charges have severely impacted many industries, particularly in Punjab, where half of the region's spinning mills have shut down over the past two years.

Nisar also urges the government to renegotiate agreements with Independent Power Producers (IPPs) to alleviate the crisis. The future of Pakistan’s economy depends on the government's actions, he adds.