KARACHI: Well-placed sources within the textile sector have warned of a looming massive layoff across the country as factories have been shut due to lockdown.
Mill owners have complained about the federal government’s failure to implement what it promised. Due to transport restrictions, ordered cannot be dispatched and production is at a standstill only leading to pile up the economic woes of the sector. Mill owners are relying on the tax refunds that the government says would return soon. Otherwise, they say they are cash strapped and this will deepen.
The supply chain discontinuity may lead to losing international orders to other countries which are still entertaining orders. The law enforcement agencies are stopping materials and people from reaching factories which has caused forced shutdown of production units. Owners have also reported that utility bills are being posted as usual despite the PM’s orders to ensure relief on that front.
According to estimates, sales are likely drop by 50 per cent in coming times which will impact lower income groups associated with the sector as skilled workers.
