One Unit Closed Earlier, Another Shutters Leaving 900 Unemployed; Ongoing Operations Slashed to 40% Capacity
Due to increase in production cost due to increase in energy tariff and markup, more than hundred small and big factories, including Satara Textile Mills, one of the leading textile mills of Faisalabad, have closed down.
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According to the private TV channel Hum News, the group leader of Pakistan Hosiery Manufacturers and Exporters Association, Chaudhry Salamat, says that the global conditions are very favorable for increasing exports, but the rest of the mills here will also be closed by next month. Chaudhry Salamat said that Due to the closure of textile units, a total of one and a half to two lakh workers have become unemployed in the city. If the government does not bring down the markup rate to single digits by reducing electricity and gas prices, the industry that is running will also shut down.
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He added that at present most of the factories have stopped receiving export orders and are limited to manufacturing pre-booked orders after which further industry will shut down by next month.
In this regard, Pattern Chief of Pakistan Textile Exporters Association Khurram Mukhtar said that the government will pay refunds, make electricity, gas cheap, markup rate to single digit, everything will be fine.
He said that a unit of Satara Textile has been closed some time ago while another 900 employees have become unemployed from the unit that was closed yesterday. Even in the textile mills where the production process is going on, the production has been limited to 40%.
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