Karachi: Economic distress continued to bite Pakistan’s textile sector after another local textile firm announced that it will curtail production by half. Crescent Fibres Limited, engaged in manufacture and sale of yarn, conveyed to Pakistan Stock Exchange (PSX) that company has decided to curtail production by up to 50 percent on temporary basis.

“As you are aware, global economy is heading towards recession and this has led to widespread demand destruction in textile as well as other sectors. Keeping in view global economic situation and outlook, company has decided to curtail production by up to 50 percent,” said notice.

“We believe this is temporary measure and will continue to monitor situation closely and be ready to restart as soon as demand improves which we expect in second quarter of 2023,” added notice.

Announcement comes as Pakistan faces multiple challenges including rising debt, low foreign exchange reserves and an energy shortage, pushing companies to either shut down or limit their operations.

Ismail Iqbal Securities Limited in its report released projected Pakistan will witness negative GDP growth rate of one percent in FY23. “Industrial growth is expected to come at negative 4 percent in FY23, as industries are shutting down operations amid low demand and lack of raw material availability,” said brokerage house.

Published in The Daily National Courier, January, 04 2023

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