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Factories Making Towels and Bedsheets Are Shutting in Pakistan

  • Severe floods damaged a third of cotton crop, causing shortage
  • Textile industry accounts for half of the country’s exports

Pakistan’s small textile mills, which make products ranging from bedsheets to towels mainly for consumers in the US and Europe, are starting to shut after devastating floods wiped out its cotton crop.

As many as 100 smaller mills have suspended operations due to a shortage of good quality cotton, high fuel costs, and poor recovery of payments from buyers in flood-hit areas, said Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association. Larger firms, which supply to global companies like Nike Inc., Adidas AG, Puma SE, Target Corp., are less affected as they are well stocked, he said.