Many Textile Mills In Pakistan Are Closed.

Pakistan textile industry has developed rapidly over the years, but in the past ten years, many

Textile mills face serious electricity

A joint survey conducted by the World Bank Group International Finance Corporation (IFC) and the State Bank of Pakistan showed that many textile mills in the area of India were closed, resulting in unemployment and the pfer of production to other South Asian countries, namely, India, Bangladesh and China.

The survey shows that local customers in turn face the market shortage of textile products and the excessive price of household goods.

The main challenge for stable supply of textile industry is that raw material prices are rising, consumption tax and import tariff of raw materials are too high, and at the same time, they are also facing energy crisis.

According to the survey, about 50% of enterprises with a total capital of less than 10 million Lu, about 65% of total assets less than 10 million rupees reflect that although capital intensive enterprises, some enterprises have relatively low start-up capital.

Business related assets include special equipment and machinery in the textile industry.

This part of the annual revenue is basically 10 million rupees -5000 rupees, the main cost is raw material costs, staff and labor costs, as well as borrowing interest costs.

All businesses show healthy earnings, including those who have experienced a growth of up to 25%.

However, the sample enterprises selected over the past three years have also experienced 11% business losses.

The reason for the loss is the lack of international competitiveness, rather than the lack of demand for textile products. 65% of enterprises reported that their gross income reached 100-500 rupees.

According to the joint report, small and medium enterprises (SMEs) account for about 70% of Pakistan's enterprises. They play an important role in promoting economic activities and contribute 78% to Pakistan's non-agricultural GDP.