Textile mills pull shutter as production costs soar

12 Jun '08

2 min read

As many as 40 textile mills in various industrial areas of Karachi have completely closed operations due to rising cost of production and political uncertainties in Pakistan.

Mr Haji Sattar Agar, owner of Agar Textiles Private Limited, told Fibre2fashion, “Almost 20 mills manufacturing yarn and 20 others producing knitting garments have shut down. Besides, over 10 mills have also met with similar fate in North Karachi industrial area. Operation in my own mill has been put to a halt.”

Mr Haji also asserted that apart from the reasons already mentioned, the ever-increasing rate of interest, power cuts and rise in cost of labor has also contributed immensely in making smooth operation a distant reality.

Additionally, prices of cotton has surmounted beyond the expected level from Rs3,100 to Rs4000, making the raw material out of reach for many small scale millers and thereby forcing them to shut down.

Expanding imports from China has flooded the local markets and since the prices of these products are relatively cheaper than those produced domestically, customers have been invariably attracted to buying foreign goods. This again has dampened the business of textile manufacturing units in Pakistan.

Unless these daunting factors are overcome, situation is unlikely to improve in the near future leading to more closures of textile mills consequently increasing unemployment and imports.

Fibre2fashion News Desk - India

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