Allah Nawaz Khan
Pakistan’s textile industry is in decline. Once a pillar of economic stability, this sector is now facing severe challenges. Poor policies have significantly contributed to its deterioration. This industry used to provide employment to millions and generate substantial investment, but now nearly 144 mills have shut down, leaving a large number of workers unemployed.
One of the major reasons for the closure of industries is the decline in production. There are several factors behind this decrease. For instance, the sugar industry is indirectly replacing the textile sector, as land previously used for cotton cultivation is now being used to grow sugarcane. Other crops are also being cultivated on cotton land, negatively affecting the textile industry. Cotton has always been the backbone of this sector, and reduced cultivation has led to serious losses.
Additionally, a significant amount of land has been taken over by housing societies, while much investment has shifted toward real estate. Due to a lack of investment, the industry has been unable to sustain itself and has suffered heavy losses. Climate change has also played a destructive role. Unseasonal rains and floods have severely affected cotton production. Water scarcity and poor-quality seeds have further contributed to the decline. Moreover, improper crop management has damaged cotton yields. In many cases, pests attack cotton crops, but farmers either cannot afford pesticides or fail to apply them on time, leading to reduced output.
Compared to other countries, the cost of cotton cultivation in Pakistan is much higher, making Pakistani cotton expensive and less competitive globally. Countries like Bangladesh and Vietnam have lower production costs, which gives them an advantage. Cotton production in Pakistan has dropped drastically—from 14 million bales in 2005 to just 5 million bales, a decline of about 65%. This significant reduction has forced Pakistan to import raw materials, resulting in financial losses.
Apart from cotton-related issues, other policy failures have also contributed to the decline. Expensive and unreliable energy has caused serious damage to the industry. Electricity tariffs for industrial use are nearly double those in countries like Bangladesh, Vietnam, and India. Gas prices are also high, increasing production costs and reducing mill capacity. Transportation challenges further complicate matters, as moving cotton from farms to mills is costly and inefficient. High taxes, elevated interest rates, and a slowdown in global demand have also negatively impacted the industry.
Despite these challenges, the textile industry can still be revived. It continues to contribute to the economy and deserves special attention. Government subsidies can help stabilize the sector. Reports suggest that the government is working on a plan to support this industry, and it is hoped that these measures will prove effective.
Providing affordable energy is essential for recovery. Large areas of uncultivated land can be utilized for cotton farming. Pesticides should be made more affordable, and farmers should be educated about modern agricultural practices to improve crop management. While cotton cultivation is increasing in Punjab, similar efforts should be encouraged in other regions. Addressing water scarcity is also crucial.
If immediate attention is not given to this sector, the situation may worsen in the future. The textile industry has the potential to significantly strengthen Pakistan’s economy. Many mills are still using outdated machinery, so upgrading to modern equipment is necessary. The government should allocate special funds for this purpose. Additionally, steps should be taken to facilitate access to international markets.
All closed mills must be revived; otherwise, Pakistan’s economy will continue to suffer losses.
The writer can be reached at
allahnawazk012@gmail.com
