LAHORE – Around hundred factories, including Sitara Textile Mills have stopped their operations amid massive surge in energy tariffs and sky high markup rates.

Mill owners said production costs have escalated, leading to the closure of over hundred mills. The other remaining textile mills have cut their production by half. The recent shutdown resulted in an additional 2lac job losses in country's third populated city.

Workers and mill owners said running these factories with current electricity and gas prices is unbearable, and they also demanded drop in the markup rate.

The factories currently operational also stopped taking new export orders and are only working on existing ones, with further factory closures expected in the coming month.

Pakistan Textile Exporters Association officials pointed out that current global market conditions are favorable for increasing exports, as many American and European brands are shifting away from China, and the situation in Bangladesh might benefit Pakistan’s export orders.

Traders and mill owner also denounced expensive electricity tariffs and the need for energy from cheaper sources. They also called for reduced interest rates and an independent energy audit.

These leaders argued that IPPs have taken excessive payments compared to their investments, resulting in unbearable electricity costs and significant industry shutdowns.