By Ahmed Khan
Thousands of power loom units across Karachi are teetering on the brink of closure as soaring electricity tariffs, rising production costs, and falling demand take their toll. The ongoing Karachi power loom crisis has left thousands of workers and factory owners struggling to survive.
Industry insiders warn that without swift government action, the city could face massive job losses and a sharp dip in textile exports, a key source of national revenue.
For decades, Karachi’s power loom industry has been the backbone of its textile economy, employing hundreds of thousands of workers. These units — from small workshops to mid-sized factories — supply fabrics to both domestic and international markets. But the current economic downturn has pushed many to the edge.
Rising Energy Prices Cripple Textile Units
Electricity rates have spiked to unprecedented levels, making it increasingly difficult for units to stay afloat. Loom owners say their energy bills have nearly doubled, while the costs of yarn, dyes, and other raw materials continue to climb. Coupled with high interest rates and inflation, profit margins have all but vanished.
“Every month we’re just working to pay off electricity bills and wages,” said Amjad Khan, a loom owner from the SITE area. “If things go on like this, shutting down will be our only option.”
Shrinking Production and Job Losses in Karachi’s Industrial Zones
Across industrial areas like Korangi, SITE, and Orangi Town, many small power looms have already cut production or shuttered entirely. Daily-wage workers — the backbone of the sector — face layoffs, delayed payments, and an uncertain future. Some have been forced to return to their hometowns after years in Karachi’s textile trade.
A Nationwide Textile Slowdown with Karachi Worst Hit
The crisis echoes similar struggles across Pakistan’s textile hubs, where surging input costs and weak exports have battered profitability. But Karachi’s case is especially dire, given its dependence on imported materials and higher utility rates than other cities.
Industry groups estimate that if the current trend continues, as many as 40% of the city’s power loom units could close within six months — wiping out thousands of jobs and further straining an already fragile economy.
Industry Leaders Demand Immediate Government Relief
The Karachi Power Looms Association has urged both federal and provincial governments to step in immediately with relief measures, including reduced energy tariffs, tax concessions, and a return to subsidised rates for small and medium-sized textile units.
“The collapse of this sector would devastate livelihoods and shrink government revenues,” warned Mustafa Tufail, the association’s secretary general. “When factories close, workers suffer and the government loses income. We need policies that keep industries alive, not drive them out of business.”
Financial Support and Modernisation Seen as the Way Forward
He also called for a dedicated financial support programme to help the entire textile value chain — from spinning and weaving to dyeing and finishing — modernise equipment and improve energy efficiency.
Author Profile
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Ahmed Khan is a business journalist who specializes in Pakistan’s financial markets, corporate earnings, and economic policy.
With a keen eye for market trends and investor behavior, he breaks down complex financial developments into clear, insightful stories for everyday readers.
