Rising production costs and stagnant textile exports are making survival difficult for the power loom industry in Karachi, Pakistan. The past two and half years have been particularly challenging for the sector as economic activities in the country slowed down. The introduction of heavy taxation measures in the budget for the current financial year has further worsened the situation. Threatening to further weaken the sector, these measures could potentially lead to the closure of small and medium-sized businesses, warn experts.
Expressing his disappointment over the government’s lack of commitment to economic and industrial development TabbasumHussain, Secretary General, Power Looms Association in Karachi, says, the power loom industry plays a critical role in generating revenue and creating employment opportunities. Shutting down these looms would not only deprive the government of a valuable revenue stream but also result in massive job losses, he warns.
Hussain urges Prime Minister Shehbaz Sharif, Finance Minister Muhammad Aurangzeb, and Commerce Minister Jam Kamal to reconsider the taxes, electricity, and gas rates. It is essential to reduce these costs is essential to keep the sector operational. The government should also revise the taxation policy to ensure smooth functioning of these power looms to prevent further economic decline, he emphasises.
