Pakistan’s textile industry is facing a severe crisis due to rising production costs and a sharp decline in cotton output. Many spinning units have shut down, and Pakistan is losing its footing in the international market, warns Mian Zahid Hussain, Chairman of the National Business Group Pakistan and President of the Pakistan Businessmen & Intellectuals Forum.
Speaking to business leaders, Mian Zahid Hussain highlighted several challenges faced by the textile sector, including delayed tax refunds, high-interest rates, policy uncertainty, and government-imposed taxes. These factors have discouraged investment in the industry, making it harder for businesses to survive.
He added that the Federal Board of Revenue (FBR) has increased pressure on exporters due to the strict targets set by the International Monetary Fund (IMF). This has further burdened the industry with excessive taxes, making operations difficult.
To prevent further decline, he stressed the urgent need to resolve tax refund issues, provide electricity and gas at competitive rates, and boost local cotton production. If these problems are not addressed, Pakistan’s textile sector could face an even deeper crisis.