The textile industry is in a severe crisis as a result of skyrocketing energy prices, with 150 textile mills closing down in the last five months.
According to the details, 150 spinning and weaving textile mills in Pakistan have closed in the last five months due to an increase in the country’s energy crisis, which has resulted in the unemployment of at least 2 million people.
While criticizing the economic strategy of the current government the mill owners said, “production cost of the industry has increased by 100% under the current government.”
The owners complained about the increase in energy prices, claiming that during the previous government’s tenure, electricity rates were Rs18, but have now risen to Rs36, and petrol prices have risen from Rs150 to Rs245 per litre.
According to mill owners, gas is not available to industries, and letters of credit (LCs) are not opening for imports, resulting in a lack of raw materials for the textile industry. The government must act quickly to address the situation, or more textile mills will close.
The skyrocketing energy prices caused by the Russia-Ukraine war are causing concern around the world, particularly in energy-importing countries.
The crisis is particularly acute in Europe, where consumer purchasing power is declining, while Bangladesh’s government is implementing load-shedding to alleviate the energy crisis.
The textile and apparel industries are also feeling the effects of the crisis, such as high production costs, raw material shortages, a drop in export orders, and so on.
Russia’s invasion of Ukraine has had a significant impact on the global energy structure, disrupting supply and demand patterns and shattering long-standing trading relationships.
To read our blog on “Global brands and the textile sector explore going net-zero,” click here
