Chinese textile imports trigger mass loom closures and 100,000 job losses in Faisalabad
Over 40% of power loom units in Faisalabad have shut, leaving more than 100,000 workers unemployed as cheap Chinese yarn and cloth flood the market and rising costs squeeze operators.
In Faisalabad, Pakistan’s major power-loom centre, about 40% of the 800,000 looms have ceased operation, resulting in more than 100,000 workers being laid off. Operators attribute the collapse to a surge of inexpensive Chinese polyester yarn, grey cloth and finished textiles that undercut domestic prices, compounded by rising utility charges and taxes. Union leader Aslam Meraj and sizing-mill chief Shakil Ansari highlighted the loss of competitiveness and disrupted trade routes to Afghanistan and Central Asia.
Individual owners such as Muhammad Sabir also condemned government policy that permits these imports. The Council of Loom Owners Association has written to Commerce Minister Jam Kamal, urging stricter customs checks to curb alleged under-invoicing of Chinese shipments by matching Pakistani declarations with Chinese export documents. They argue that stronger verification could protect local manufacturers and recover lost revenue.
Why it matters
The downturn threatens Pakistan’s textile export base and livelihoods of hundreds of thousands of workers.
In this story
