Markazi Kisan League warns of economic impact as textile mills shut down

LAHORE: Chairman Markazi Kisan League (MKL) Chaudhry Zulfiqar Ali Olakh and President Muhammad Ashfaq Warrak have expressed concern over the closure of more than 150 textile mills across the country, warning that the national economy could face further damage if immediate steps are not taken.
In a joint statement, the leaders said the textile industry was the backbone of Pakistan’s economy, but rising electricity prices, high interest rates and continuous increases in petroleum prices had pushed the sector into a serious crisis.
They said the textile sector was not only a major source of foreign exchange earnings for Pakistan but also provided employment to millions of workers and labourers. According to them, several major textile mills have already shut down, while many other industries are also facing the risk of closure.
The leaders warned that if the current situation continued, unemployment would increase further and millions of families could face severe financial hardship.
They also said Pakistan was once considered among the world’s leading cotton-producing countries, but poor government policies, lack of agricultural research and anti-farmer measures had caused a sharp decline in cotton production. “The shortage of cotton had created a raw material crisis for the textile industry.” They added.
The MKL leaders criticised the closure of a cotton research institution in Multan and called it an unfortunate decision. They urged the government to reactivate agricultural research institutions, establish modern research centres and introduce new cotton varieties through practical measures.
They further demanded a reduction in electricity, gas and petroleum prices, lower interest rates and a special relief package for industrialists and farmers to help save the textile sector and the national economy from further decline.