Due to excessive costs, more than 100 factories in Faisalabad closed.
Due to rising markups, high gas and energy costs, and other factors, over a hundred textile companies in Faisalabad have closed.
According to the information, running textile factories have cut their output by forty percent. Recently, Satara Textiles closed a unit, which meant that another 900 workers lost their employment.
The Pakistan Hosiery Manufacturers and Exporters Association group head, Chaudhry Salamat Ali, stated on Saturday that the closure of these textile factories has resulted in the unemployment of between 150,000 and 200,000 workers in the metropolis.
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He issued a warning, saying that even operating mills would close if the government did not lower the cost of gas and electricity and reduce markup to single digits.
According to the News,
According to News, more factories are anticipated to close by the end of next month. The majority of enterprises have ceased accepting new export orders and are just focusing on fulfilling current ones.
Patron General of the Pakistan Textile Exporters Association Khurram Mukhtar noted that the current state of the world economy is conducive to export growth, as many European and American companies are turning away from China, while Pakistan’s exports are being impacted by the situation in Bangladesh. It is anticipated that there will be an increase in Directives
He called on the government to seize this chance to lower energy prices right away and get the markup rate down to a minimum of 14 percent.
Taxes and Refund payments
Mukhtar emphasized that the industry is widely frustrated and that fast action is required in response to the tax rise and refund payment delays. According to him, Pakistan’s exports were worth $1.2 billion in the previous month, and they might easily top $2 billion.
While Pakistan possesses the raw materials and there are chances in the global market, he stressed that infrastructure improvements in the business environment and productivity are crucial for economic stability and job development.
Mukhtar told business owners not to give up since the government is making efforts to lower energy prices. He implored the government to intensify its endeavors and furnish a prompt action plan to tackle the annoyances of the sector. the attacked the new budget for keeping the domestic textile company rate at one percent while increasing the advance tax on exporters to two percent.
He called for a halt to this discriminatory practice and stated that exporters should cease paying the extra 0.25% export development surcharge until the money that was previously collected was used.
Additionally, he emphasized that the program that exempts exporters from general sales tax on purchases made locally had been discontinued and ought to be revived right away because it doesn’t require payment of taxes.
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