Pakistan's economic woes leave textile industry in tatters

economictimes.indiatimes.com:

Pakistan textile industry that has seen it lose ground to more nimble Asian competitors. «When you lose your job, your life comes to a close,» the 43-year-old from Lahore told AFP. «We've been working in factories for years… the day you get sacked, the story ends there.» Pakistan's industrial manufacturing sector — like elsewhere in the world — has suffered from the slowdown in global consumption and the rise in energy costs following the outbreak of war in Ukraine.

But the difficulties of the textile sector, which accounts for 60 percent of Pakistan's exports, are compounded by the critical state of the economy and months of political chaos. In Pakistan, the industry was buoyed at the tail end of the coronavirus pandemic, when it was freed of restrictions earlier than regional rivals India and Bangladesh and benefited from government financial aid, including slashed energy rates. In 2022-2023, however, textile exports fell by 15 percent to $16.5 billion.

«Two years ago, we were on a very high growth trajectory… we were confident that our exports this year would go to $25 billion,» said Hamid Zaman, managing director of Sarena Textile Industries. «Unfortunately, when you have political instability and things are not clear, and the policies of the government are reversed, this whole thing has gone into a tailspin,» he told AFP. The political chaos started in April last year, when Imran Khan was dismissed as prime minister by a vote of no-confidence.