What happened
According to a report by Dawn, Pakistan's power loom industry is facing severe distress due to rising operational costs and an influx of cheap textile imports. In Faisalabad and neighboring towns, approximately 40 percent of power loom facilities have ceased operations, leaving over 100,000 workers unemployed. Industry representatives attribute the downturn to heavy utility bills, taxation, and market dominance by cheaper imported goods from China.
Key facts
- The sector comprises nearly 800,000 looms, ranging from small workshops to large factories containing 1,000 to 5,000 looms.
- Local producers struggle to compete against imported Chinese polyester yarn, grey cloth, and finished products that undercut domestic prices.
- Regional trade has been disrupted by border closures affecting exports to Afghanistan and Central Asian nations, as well as road closures leading to Khyber Pakhtunkhwa that have delayed trader payments.
- The Council of Loom Owners Association has urged Commerce Minister Jam Kamal to enforce stricter import valuation controls to combat under-invoicing.
- The association recommended requiring importers to submit Chinese Export Customs Declarations to reconcile declared values via the existing Electronic Data Exchange system between Pakistan and China.
Why it matters
According to Dawn, domestic textile producers argue that widespread under-invoicing of imported goods creates an uneven playing field and reduces government revenue. Combined with high utility costs, tax burdens, and logistics disruptions, many small business owners report that their operations have ground to a halt, leaving thousands of workers without livelihoods. Official government action regarding the industry's demands is not specified in the source; please check the official notice.
Source: Dawn - Home · Published October 07, 2026 · Photo by Brett Jordan on Unsplash