Around 40 percent of power loom units in Faisalabad and nearby towns have reportedly shut down, as the textile sector comes under growing pressure from cheaper Chinese imports, rising utility costs and higher taxes.
Industry representatives say the closures have left more than 100,000 workers without jobs, raising concerns about employment and the future of small textile businesses in the region.
The power loom sector is a major part of Faisalabad’s textile industry and is estimated to comprise nearly 800,000 looms. These range from small workshops run by local businesses to larger manufacturing facilities that supply textile products to different markets.
Smaller units have been among the hardest hit by rising production costs and competition from imported textiles. Shakil Ansari, who represents sizing mills, highlighted the difficulties small businesses face as they struggle to keep operating under challenging market conditions.
The situation has prompted calls for stronger monitoring of imported textile products. The Council of Loom Owners Association has approached Commerce Minister Jam Kamal and asked for tighter checks on the alleged undervaluation of textile imports.
Industry representatives say undervalued imports put extra pressure on local manufacturers by allowing imported products to enter the market at prices domestic producers cannot match.
The closures have deepened concerns about the sustainability of Faisalabad’s power loom sector and its impact on thousands of businesses and workers. Industry stakeholders are now seeking government measures to address import related concerns and rising operating costs while supporting local textile production.