Pakistan Textile Factory Shut Down Due To Soaring Production Costs

40 textile factories in different industrial areas of Karachi have been completely closed due to increased production costs and political instability in Pakistan.

Almost 20 home textile mills and 20 knitted garment factories have been closed, said Haji Sattar Agar, owner of Agar textile private company in Pakistan.

In addition to the factors mentioned above, he said, interest rates on banks continue to rise, and frequent power failures and increased labor costs are also responsible for the closure of factories.

Meanwhile, cotton prices rose more than expected, rising from 3100 rupees to 4000 rupees, forcing them to close beyond the affordability of many small textile mills.

Imports from China are increasing. Pakistan's domestic market is full of Chinese imports. The prices of Chinese imports are lower than local products, and consumers are willing to buy foreign goods.

Unless these daunting factors are overcome, the situation can not be improved in the near future, and more textile factories will be closed, followed by an increase in unemployment and an increase in imports.