Muhammad Saleem

Faisalabad’s local garment sector is facing headwinds, with the high cost of doing business being a major obstacle. However, opportunities for growth and innovation exist to help recover the losses. Talking to WealthPK, Waheed Khaliq Ramay, Chairman Power Looms Association, said like major textile sectors, including spinning, weaving, dying and printing, the local garment sector was in a dire state and struggling to stay afloat. Instead of seeking new orders, business owners, both large and small, are finding ways to survive, as the high cost of energy is draining their resources rapidly. He said everyone, from top to bottom, knew that Faisalabad was considered the textile capital of Pakistan and required special attention to enable businessmen to focus on business development. However, the situation was going awry, as the energy was wreaking havoc on the textile sector. Currently, he said the textile sector, including the local garment industry, was facing a barrage of challenges, with the energy crisis being one of the most significant. He said the high cost of energy was restricting them from operating factories to their optimum capacity. “Frequent power outages disrupt production and increase the input costs.

The energy crunch is not new but a long-standing issue that has forced dozens of businessmen to close up shops. “We have faced the energy crisis in the past, but at that time, we were not subjected to mental stress due to the unpredictable electricity rates. However, these days, we are unable to set our budgets due to the fluctuating rates, and the rulers seem incapable of tackling the gigantic issues of the power sector,” Waheed maintained. Discussing government policies and initiatives that can ease pressures on the garment and other sectors, he said that no single business could thrive without government assistance. He said only the rulers had the power to allocate substantial funds for development and introduce business-friendly policies. “In the past, a policy was introduced to help textile and garment manufacturing to fetch the much-needed forex; however, the policy remained a dead letter, failing to deliver the intended benefits to the textile sector. “There’s still time to reinvigorate the textile industry by providing cheaper energy.

Only the textile sector can address the job requirements of Pakistan. The government must consult with the stakeholders to devise the future strategy, otherwise, our fate is sealed,” the Power Looms Association chairman said. Ghulam Nabi, a knitting factory owner, said Jinnah Colony was the epicenter of the local garment sector; however, one could see that this area was wearing a deserted look these days. This situation has arisen due to the high cost of raw materials and energy. He said like the textile sector, the local garment sector was also contributing significantly to the national economy but it was often overlooked by the policy makers. He pointed out that the spinning mills were reluctant to reduce the prices of yarn, claiming that they were running on fumes while absorbing the high energy costs. He said the regional business rivals of Pakistan provided multiple facilities to the millers, but in Pakistan, the situation was altogether different.

Dr. Ashraf, a state-run university teacher, speaking to WealthPK from economic perspective, said the energy crisis was wreaking havoc on every segment, and the local garment sector was no exception. He said the inflated rates of energy and its shortage were directly impacting the garment sector and its workforce and questioned how the millers could keep their head above water when ill-conceived policies were in place. The operational efficiency and cost structure are make-or-break factors for any business. These days, the textile mills and garment sectors are unable to maintain their business pace. Shortage of reliable energy supply has forced the factory owners to seek other sources but these options are a bitter pill to swallow due to their high costs, making it challenging for them to compete internationally. He said the business rivals of Pakistan enjoyed favorable business environments, with lower labor wages and electricity rates, enabling them to offer products at competitive rates compared to Pakistan.

Credit: INP-WealthPk