The textile sector, Pakistan’s largest export contributor and the second-largest employment provider, is in a deep crisis. Over 100 textile units have shut down, and many others are operating at half capacity, causing severe economic distress. Mian Zahid Hussain, Chairman of the National Business Group Pakistan, has urged the government to take immediate action to rescue industries, boost employment, and revive exports.

Key Challenges Faced by the Textile & Industrial Sector

Mian Zahid Hussain highlighted the following critical issues affecting businesses:
✅ High electricity & gas tariffs, making production costly
✅ Anti-investment tax policies, discouraging businesses
✅ Lack of financial support, leading to factory closures
✅ Weak purchasing power, reducing demand for goods

Immediate Solutions Needed

To restore industrial growth, the government must:
✔️ Reduce electricity & gas prices to lower production costs
✔️ Simplify and broaden the tax system to attract investments
✔️ Offer low-interest loans to industrialists & farmers
✔️ Increase job creation to enhance people’s purchasing power

Inflation & Economic Indicators

Mian Zahid Hussain acknowledged that Pakistan’s inflation has dropped to a nine-year low, with the latest rate at 1.5% (February) compared to 2.4% in January. However, he pointed out that:
📉 Despite lower inflation, people’s financial condition remains weak
📉 Electricity bills remain unaffordable for the public
📉 The State Bank is likely to reduce interest rates soon, which may boost the economy

Ramazan Relief Package – A Step in the Right Direction

The federal and Punjab governments’ Rs50 billion Ramazan relief packages are commendable, but they are short-term solutions. The real fix is sustainable business growth, which requires pro-industry policies.

Conclusion

Pakistan’s economic recovery depends on reviving the textile and industrial sector. The government must take urgent action to reduce energy costs, reform tax policies, and provide financial incentives to businesses. Only then can industries thrive, employment increase, and economic stability be achieved. 🚀