Factories making Bedsheets and Towels are Closing Down in Pakistan
Note:
The development comes as floods caused by record monsoon rains and snowmelt have destroyed large swaths of agricultural land in the country’s north and south.
There have been reports that up to 100 small mills have had to suspend operations due to a lack of high-quality cotton. This is a serious issue for the industry, and it’s one that needs to be address quickly. The silver lining is that there are steps that can be taken to improve the situation. For example, the government can provide incentives for farmers to grow more high-quality cotton. Additionally, the industry can invest in new technologies that help to improve the quality of the cotton that is produce. Bedsheets towels factories shutting down in Pakistan.
Pakistan’s small textile mills are struggling to stay afloat after devastating floods wiped out its cotton crop, Bloomberg reported. These mills produce products ranging from bedsheets to towels, mainly for consumers in the US and Europe. With the loss of such a crucial ingredient, many of these businesses are being force to close their doors.
Why Bedsheet and Towel Factories are shutting down in Pakistan?
According to Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association, as many as 100 smaller mills have suspend operations due to a shortage of good quality cotton, high There are a few challenges that business owners face when it comes to post-flood recovery, one of which is increased fuel costs. Poor payment recovery from buyers in flood-hit areas is another common issue that business owners have to deal with. Larger firms, which supply to global companies like Nike Inc., Adidas AG, Puma SE, Target Corp., are less affected as they are well stock.
The mill closures underscore the challenges for the sector which employs about 10 million people, accounts for 8% of the economy and adds more than half to the nation’s export earnings. Their hardships have become acute due to recent floods, which submerged a third of Pakistan, killed more than 1,600 people and damaged about 35% of the cotton crop. He said that this presents significant challenges for the future of Pakistan. Bedsheets towels factories shutting down in Pakistan
How will this affect to Pakistani Textile Industry Price?
Cotton production in Pakistan is expect to slump to 6.5 million bales (of 170 kilograms each) in the year that started in July, compare with a target of 11 million, Mukhtar said. This would mean that the nation would have to spend about $3 billion to import cotton from countries such as Brazil, Turkey, the US, East and West Africa and Afghanistan is a difficult country to do business in, said Gohar Ejaz, patron-in-chief of the All Pakistan Textile Mills Association. About 30% of Pakistan’s textile production capacity for exports has been hamper because of cotton and energy shortages, Ejaz said. Factories making Bedsheets and Towels are Closing Down in Pakistan
Pakistan’s textile sector is facing poor demand in both the domestic and export markets due to the country’s fragile economic conditions. GDP is expect to halve from 5% in the fiscal year ending June following the floods that cause around $30 billion in damage. Pakistan secured a $1.1 billion loan from the IMF in August to avert an imminent default.
The latest closure of several textile mills in Pakistan comes at a difficult time for the country, which is already struggling with high inflation and falling currency reserves. This could worsen the country’s employment situation and hit its export earnings.Larger companies are also facing a rough patch, with a demand for their products projected to fall by 10% by December due to a slowdown in Europe and the US, Mukhtar said. Bedsheets towels factories shutting down in Pakistan
