Within the last three years, the number of power looms has decreased from 40,000 to 10,000 and production of cloth from two million metres a day to 500,000 meters a day. During the same period, the industry’s export has fallen by 70 per cent and 30,000 people associated with it have lost jobs.
Gujranwala’s weaving industry was producing 80 per cent polyester and 20 per cent other items. Now, polyester shafoon smuggled from India and other items smuggled from China have hit the industry hard. Closed power loom units have been sold as scrap and the unemployed labour force has switched to petty jobs.
Power Looms Association President Rafique Ameen said fluctuations in the prices of raw materials like polyester and cotton yarn had forced small units to close. He said young people were not ready to join the industry as power loom operators or labour force because of low wages, a lack of benefits and uncertain future.
He said India had captured 80 per cent of the polyester shafoon market because Gujranwala’s industry lacked modern machines and standard dying units and colours. He said the industry was using outdated power looms and industrialists had no money to install modern machines. He said the Income Tax Department had stopped giving them refunds and the city district government was levying Rs2,000 tax from each industry annually. He said Wapda was not meeting the industry’s electricity needs.
All Pakistan Silk And Ryan Mills Association Chairman Asif Muzaffar said the government’s zero-rated sales tax policy discouraged exporters, and high cost of production hit Gujranwala industry’s cloth export. He said a few Karachi-based traders were importing Indian cloth via Dubai and asked the government to check this practice.
Muhammad Irfan Kambo, who left the weaving industry after working there for 10 years, said the labour force started quitting the industry after owners gave their power looms on contract to labourers. He said workers’ wages had not been increased for the last 10 years, adding that they had no access to health facilities.