Key Takeaways
- 40% of power loom units in Faisalabad have shut down.
- Over 100,000 workers have lost jobs due to industry decline.
- Loom owners blame cheaper Chinese imports for the crisis.
A significant portion of the power loom sector in Faisalabad is grappling with severe challenges, with around 40% of units having closed down. This has resulted in the loss of jobs for over 100,000 workers, according to the Textile, Power Loom and Garment Workers Union Faisalabad President, Aslam Meraj.
The primary issue, as highlighted by Meraj, is the influx of cheaper Chinese yarn, grey cloth, and finished textile products, which have made local products less competitive in the market. This has led to a decline in the demand for locally produced goods, exacerbating the financial strain on power loom operators.
Industry representatives, such as Shakil Ansari, President of the Faisalabad Sizing Mills Association, have expressed concerns about the impact of these imports. Ansari noted that the use of cheaper Chinese yarn by exporters has led to an increase in the import of grey cloth, some of which enters the domestic market when exports decline.
The situation has been further compounded by border closures, road disruptions, and delayed payments from traders in Khyber Pakhtunkhwa. These factors, combined with high utility bills and taxes, have created a challenging environment for the power loom sector, particularly for small units and sizing mills.
Muhammad Sabir, who operates a unit with 44 power looms, has criticized the government for its policies on imports, arguing that the government should take stronger measures to protect the local industry from foreign competition.
The closure of power loom units has not only affected the workers but also the supply chain, with sizing mills and other allied industries facing reduced demand. This has led to a ripple effect, impacting the overall economy of Faisalabad, which is often referred to as the Manchester of Pakistan due to its concentration of textile and allied industries.
Industry bodies are now calling for stronger Customs checks to curb under-invoicing and ensure that imported goods are not unfairly undercutting local producers. They are also urging the government to provide support to the sector through subsidies and other incentives to help it remain competitive in the market.
The struggle of the power loom sector in Faisalabad highlights the broader challenges faced by local industries in the face of global competition and economic pressures. The industry is now looking for ways to adapt and survive in a market dominated by cheaper imports.
This small industry is in great trouble these days because it is no longer competitive in a market dominated by Chinese yarn, grey cloth and even finished cloth being imported in bulk.
Aslam Meraj, President, Textile, Power Loom and Garment Workers Union Faisalabad
The industry, especially small power looms and sizing mills, is facing serious problems at the moment.
Shakil Ansari, President, Faisalabad Sizing Mills Association
