Around 40% of power loom units in Faisalabad and nearby towns have reportedly shut down as the textile sector faces growing pressure from cheaper Chinese imports, rising utility costs and higher taxes. Industry representatives say the closures have resulted in more than 100,000 workers losing their jobs, raising concerns about employment and the future of small textile businesses.
The power loom sector is a major part of Faisalabad’s textile industry and is estimated to comprise nearly 800,000 looms. These range from small workshops operated by local businesses to larger manufacturing facilities that supply textile products to different markets.
Industry representatives say smaller units have been among the hardest hit by increasing production costs and competition from imported textiles. Shakil Ansari, who represents sizing mills, highlighted the difficulties faced by small businesses as they struggle to maintain operations amid challenging market conditions.
The situation has also prompted calls for stronger monitoring of imported textile products. The Council of Loom Owners Association has approached Commerce Minister Jam Kamal and requested tighter checks on the alleged undervaluation of textile imports.
According to industry representatives, undervalued imports can create additional pressure on local manufacturers by allowing imported products to enter the market at prices that are difficult for domestic producers to compete with.
The closures have increased concerns about the sustainability of Faisalabad’s power loom sector and its impact on thousands of businesses and workers. Industry stakeholders are seeking government measures to address import-related concerns and rising operating costs while supporting local textile production.

