Production cuts continue in industrial sector

Another textile maker joined on Tuesday the steadily growing list of industrial units that’ve either scaled back or suspended operations citing unfavourable economic conditions. Crescent Fibres Ltd is curtailing production by up to 50 per cent owing to “widespread demand destruction,” it told shareholders on Tuesday. Earlier, Suraj Textile Mills Ltd announced it was bringing down its production by 40pc. Nishat Chunian Ltd also announced its partial shutdown because of poor business conditions. Similarly, Kohinoor Spinning Mills Ltd temporarily shut down production partly because of a high production cost and low demand. The industry-wide production halts are reflective of a rising cost of doing business locally coupled with unfavourable conditions that are prevailing in the global market, analysts said. The trend is already apparent in foreign trade numbers as textiles constitute the main source of the country’s export proceeds.