Uncertain economic situation and heavy taxes, 40 percent of powerlooms inactive

Due to uncertain economic conditions and heavy taxes, over 40% of power looms in Pakistan have become inactive, following hundreds of cotton ginning factories and textile mills, leading to distress across the entire cotton sector. The local cotton industry faces existential threats as production costs are not competitive with rival countries. Ehsan-ul-Haq, Chairman of the Cotton Ginners Forum, has urged federal and provincial governments to introduce farmer-friendly and industry-friendly policies for the immediate revival of the cotton industry. He also noted that unfavorable weather has affected the quality of cotton, leading to increased imports and prices. High electricity and gas tariffs, interest rates on loans, and tax rates in Pakistan are among the highest globally, escalating production costs compared to regional competitors, which has consistently led to a decline in exports and an increase in imports over several years. The inactivity in these industrial sectors has not only increased unemployment but is also impacting the overall national product and growth rate, necessitating urgent government action to reduce industrial production costs and reactivate industries for economic growth.