Pakistan’s Textile Firms Struggle With Energy, Borrowing Costs
Workers at a textiles facility in Faisalabad, Pakistan.
Photographer: Asad Zaidi/BloombergThis article is for subscribers only.
Pakistan’s smaller textile companies are curtailing production or selling assets to pay debt after high energy and borrowing costs hurt businesses.
Ghazi Fabrics International Ltd. on Tuesday said it would partially curtail the production of its weaving unit because of the prevailing economic conditions, increase in the cost of electricity and non-availability of quality cotton at affordable price. Nazir Cotton Mills Ltd. has decided to sell obsolete machinery to pay its debt, said the company in a separate filing to Pakistan Stock Exchange.