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ECONOMY: THE GREAT TEXTILE UNRAVELLING

18 12
04.05.2025

At Sitara Textile Mills in Faisalabad, once a beacon of industrial pride and among Pakistan’s largest textile manufacturers, a haunting silence now hovers where once the rhythmic hum of looms echoed day and night.

Two of its major production units have halted operations — one permanently, the other temporarily — crippled by the economic and energy crisis, which continues to strangle the country’s manufacturing lifeline.

“Nearly 600 workers were affected when these units closed,” says Shahroz Ahmed from Sitara’s human resource department. “The combination of high fuel prices, severe electricity shortages and declining cotton production made it impossible to keep operations running,” he tells Eos.

AN INDUSTRY IN PERIL

Sitara Textile Mills’ story is not an anomaly. The textile and fashion industry, long regarded as the backbone of Pakistan’s economy, is unravelling under the weight of skyrocketing inflation, erratic government policies, global supply chain disruptions and a catastrophic fall in domestic cotton production.

Pakistan’s textile sector, once a global player, is facing an existential crisis as rising power costs and inflationary pressure result in shutdowns and layoffs. At the same time, designer clothes and branded lawns dominate shop floors and Instagram feeds alike, revealing a troubling disconnect...

According to the Economic Survey of Pakistan 2022–23, textiles accounted for about 25 percent of the country’s industrial value-added exports and nearly 60 percent of total national exports. The sector employs 40 percent of the national manufacturing workforce. The magnitude of these numbers makes every factory closure a social tragedy; when one worker loses a job, often an entire family loses its means of survival.

Paradoxically, even as the foundational industry collapses, Pakistan’s fashion consumption is flourishing. During the religious festivals of Eid and in wedding seasons, the frenzy around branded clothing continues to spike. Shoppers throng malls, lawn exhibitions and online platforms, hungry for new collections and deals.

Pakistan’s women’s apparel market, in particular, remains the largest clothing segment in the country.

In 2023, brands such as Gul Ahmed, Khaadi and Sapphire recorded strong sales. Gul Ahmed led the pack with over Rs25 billion in revenue, followed by Khaadi at Rs16 billion and Sapphire at Rs10 billion.

These brands have expanded across the nation. Khaadi now operates in 30 cities through 60 outlets, while Sapphire has over 45 stores. Their presence has also crossed borders, with Sapphire opening outlets in the United Kingdom and the United Arab Emirates, and Khaadi establishing a store in the United States. Despite inflation and import crises, the demand for Pakistani fashion remains unwavering — both locally and abroad.

However,........

© Dawn (Magazines)