According to Pakistan’s “Business Record” report, due to the downturn in the entire textile industry, overdue loans have increased significantly, reaching 3,200 rupees, which has brought huge risks to the banking industry.
Due to declining exports, tight electricity and natural gas supplies, and rising production costs, a large number of textile companies have closed or gone bankrupt in the past few months. Among the textile companies still in operation, the most difficult ones are those small and medium-sized enterprises. Large enterprise groups can easily obtain bank loans because of their strong strength. However, they are not optimistic.
At present, textile companies are placing their hope on the government for help. After 16 talks with the Pakistan Textile Enterprises Association, the Prime Minister’s Financial Advisor recently finally stated that a package of relief measures will be launched as soon as possible, but the Pakistan Banks Association is not willing to lend a helping hand to the textile industry. In response, the Pakistan Textile Enterprises Association warned that loans to the textile industry accounted for 22% of the total loans issued by the banking industry. If the banking industry does not expand loans to the textile industry, the textile industry will face an overall collapse in the next three months, and the banking industry will be greatly implicated by then.
