Around 40% of Faisalabad power loom units shut amid Chinese imports, high costs: report

According to Dawn, around 40% of loom operations in Faisalabad and nearby towns have closed, with operators blaming cheaper Chinese textile imports, higher utility bills and taxes. Industry representatives say more than 100,000 people have lost employment. The sector comprises close to 800,000 looms, from small workshops to factories running between 1,000 and 5,000 machines.

Union president Aslam Meraj said looms were shutting every day as domestic goods struggled against imports of yarn, grey cloth and finished items. Other industry voices noted that most Chinese yarn is polyester-based, and exporters convert it into grey cloth, part of which reached the local market after exports fell. Shakil Ansari of the Faisalabad Sizing Mills Association said smaller loom and sizing units were hardest hit. He added that border closures had hindered cloth shipments to Afghanistan and Central Asia.

Operators further pointed to electricity charges, FBR levies and labour expenses as additional strains. Commerce Minister Jam Kamal has been urged by the Council of Loom Owners Association to tighten scrutiny of suspected under-invoicing in textile imports from China. Under the proposal, importers would attach Chinese export customs papers to their Pakistani goods declarations, letting officials cross-check values, HS codes and quantities. The association also wants the existing customs data exchange with China strengthened for consignment-level checks.