Over 100 factories closed, 200,000 people unemployed amid rising inflation in Pakistan

IHRO Condemns the Ongoing Crisis in Faisalabad’s Textile Industry: A Call for Immediate Government Action

The International Human Rights Observer (IHRO) expresses deep concern about the ongoing crisis in Faisalabad’s textile industry, which has led to the closure of over a hundred factories, including the renowned Sitara Textile Mills. This alarming situation has resulted in massive job losses, with nearly 900 workers from Sitara Textile alone facing sudden unemployment. The broader impact on the region is severe, with an estimated 150,000 to 200,000 workers now left without jobs.

IHRO stands in solidarity with the affected workers and their families, who are bearing the brunt of this economic turmoil. The closure of these factories is not merely an industrial issue; it is a human rights concern, as the livelihoods of thousands of workers and their dependents are at stake. The rising energy tariffs and exorbitant markup rates are crippling the industry, leading to a sharp decline in production and export orders, further exacerbating the economic strain on the region.

The IHRO urges the government to take immediate and decisive action to address this crisis. The reduction of energy tariffs and markup rates is crucial to prevent further closures and job losses. The government must also ensure that the textile industry receives the necessary support to enhance production capacity and improve infrastructure, enabling it to seize the current global market opportunities.

Furthermore, IHRO calls on the government to expedite the payment of delayed refunds and reduce the tax burden on the industry. These measures are essential to alleviate the financial strain on textile manufacturers and exporters, allowing them to operate efficiently and sustain employment in the region.

IHRO stresses that the protection of workers’ rights and livelihoods must be a top priority in any economic recovery plan. The government’s inaction not only jeopardizes the textile industry but also threatens the socio-economic stability of the entire region. IHRO remains committed to advocating for the rights of the affected workers and will continue to monitor the situation closely.