AVN News Desk
KARACHI: In the wake of Pakistan’s severe economic downturn, a Karachi-based textile unit has announced plans to lay-off employees, reflecting broader challenges in the country’s export sector.
Naz Textiles (Private) Ltd, in an official statement, notified its employees to seek alternative employment due to significant losses stemming from dwindling orders, informing them that July 31st will be their last day at work, and that all their dues will be settled by August 10.
Confirming the impending downsizing, Muhammad Javed Bilwani, Chief Coordinator of All Export Associations of Pakistan, attributed the crisis to high taxation and soaring utility costs, which have crippled industrial output. Bilwani warned of more closures in the coming months, apprehending a drastic decline in exports.
“Numerous industries are set to halt operations after fulfilling their current export commitments,” he stated, blaming it on widespread dissatisfaction within the business community and the general public alike.
He criticized the government for imposing taxes as high as 42 percent on exports without a reliable refund mechanism, exacerbating financial woes for exporters. “This administration’s economic policies have plunged the country into turmoil,” Bilwani remarked, terming the abolition of the Export Facilitation Scheme (EFS) critical setback.
He further criticized the introduction of a 10 percent super tax, pushing the total tax rate to an unsustainable 41 percent for the sector, including a 2 percent workers welfare fund.
Regarding Naz Textiles, HR Manager Fahim clarified that while internal adjustments had been made, the company had no immediate plans to cease operations beyond July 31, contrary to initial reports.
In their official communication, Naz Textiles underscored the decision as a regrettable outcome after years of striving to maintain operations amid mounting challenges. Hindered by a sharp decline in orders and doubled production costs, the company faced insurmountable financial losses, necessitating the difficult decision.
Overall, the downsizing of Naz Textiles shows the precarious state of Pakistan’s export industry, with widespread implications for industrialization and economic stability moving forward.
