About seven million people in textile and textile-related industries in Pakistan have been laid off. So say representatives of value-added textile associations.

They say this has been due to dwindling exports and the economic crisis. Textile factories are being deprived of the necessary raw material and accessories.

The industry is on the verge of closure as many units have already closed down. Several others are planning to either shut down or shift their production abroad. Letters of credit worth as low as $5,000 are being refused, which has hit in-progress export orders of $500,000 per consignment. This has caused severe disruption and production delays and has led to the cancellation of export orders. Demurrage on various consignments has increased the cost too much, the associations say. The industrial sector cannot operate under extreme financial stress as the alarm bells for sovereign default have been continuously ringing.

The country is in the middle of a dollar crisis and the economy is facing an emergency-like situation. The current shortage of dollars, say the associations, can be overcome only by promoting exports.

In the meantime the value of textile and garment exports from Pakistan decreased by five per cent from July 2022 to November 2022.