Once a pillar of economic prosperity and stability, Pakistan’s textile sector is currently experiencing a serious crisis that has given rise to an unexpected trend: the export of used textile machinery. These machines have ended up in Afghanistan, Indonesia, and several South American countries, which is a clear sign of the industry’s problems. This tendency, which is causing millers to sell off assets in an effort to reduce losses, is not merely an ongoing trend but rather a reaction to persistent problems facing the industry.
The rising cost of production in Pakistan is the main driver of the machinery migration. Lack of energy has caused a sharp rise in operating expenses and unpredictable manufacturing schedules. Gas and electricity, which are essential for producing textiles, have grown more costly and unreliable. Furthermore, the cost of importing raw materials has increased due to the Pakistani rupee’s declining value. Many mills are forced to sell their equipment, sometimes even for scrap, due to financial difficulties. The global economic environment is a crucial component contributing to this problem. Pakistani textiles now have less market due to a fall in the demand for textiles abroad and global economic uncertainty.
Consequently, there is an overproduction issue since the manufacturing capacity has exceeded the demand. The situation has been made worse by internal industry problems, such as unresolved owner disputes and unsound government policies.
Regarding the main destinations for the exported machinery, there is some disagreement in the sector. Market sources indicate that Afghanistan, which has started operations with 30,000–40,000 spindles based on these old machines, is receiving a significant percentage of this equipment. Afghanistan, according to several industry experts, is not the most popular destination. Iftikhar Mohiuddin, of Hussnain International, a company that trades textile machinery internationally, disputes the idea that a sizable portion is being shipped to Afghanistan. While he admits that machines are being transported there, he also notes that a sizable amount is also making its way to Indonesia, South and North America. The Saif Group, a significant textile company in Khyber Pakhtunkhwa, provides an intriguing example. Instead of being shipped to the neighboring country of Afghanistan, their obsolete machinery is being transferred to Faisalabad for use by local mills, despite the convenience of location. This suggests a complicated web of both domestic and international trade, motivated by a variety of economic factors.
A diversified strategy is needed to address the textile industry issue in Pakistan. To relieve the situation and bring stability to the industry, the government needs to act now. Subsidies on energy costs could be one quick fix to ease the financial strain on mills. It’s also essential to upgrade infrastructure to guarantee a steady supply of gas and electricity. Demand can also be increased by advantageous trade agreements that provide Pakistani textiles access to new markets. Modernizing the sector through investment is another essential tactic. Numerous old and ineffective machinery are being sold or discarded. Pakistan may strengthen its competitive advantage in the international market by investing in new, cutting-edge machinery and improving the workforce’s capabilities. Over time, these expenditures would save operating expenses while also boosting productivity.
Bangladesh and other nations that rely heavily on textiles should take note of the dire circumstances facing Pakistan’s textile sector. Even though Bangladesh’s textile sector is doing well right now, it nevertheless faces similar difficulties. Bangladesh needs to diversify its export markets, engage in technical breakthroughs, and guarantee a steady and reasonably priced energy supply if it hopes to escape a fate similar to that of Pakistan. In this sense, proactive government policies are crucial.
Bangladesh, like Pakistan, must implement strong preventive measures, proactive policies, and industry partnerships to avoid repeat catastrophic events. A reliable and reasonably priced energy supply can be guaranteed by making investments in renewable energy sources, enhancing infrastructure, and putting energy-saving measures into place. Modern textile machines and cutting-edge technologies must be adopted by Bangladesh, and the government should provide incentives for both modernization and environmentally friendly practices. Economic downturns can be lessened by expanding export markets and improving trade ties with developing nations. Stabilizing and fostering sector growth requires government policies that offer financial incentives for sustainable practices, research and development, and capacity building. Developing strategic solutions requires cooperation amongst industry players, including governmental agencies, for-profit businesses, and trade associations. Using sustainable methods can lower expenses, enhance the industry’s standing internationally, and lower costs in the long run.
In conclusion, the continuous problems facing Pakistan’s textile sector highlight the necessity of taking prompt, decisive action. Even while it offers short-term respite, exporting used machinery is not a long-term answer. To revive the industry, comprehensive plans to lower production costs, update machinery, and sustain demand are required. Other textile-dependent economies may protect their industry and guarantee sustained growth and stability by taking a cue from Pakistan’s experience.
