Pakistan’s Factories are Shutting DOWN

May 07, 2026 6:01 am

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Pakistan’s economic crisis isn’t just about IMF deals—it’s quietly dismantling its industrial base.

Sky-high electricity tariffs, far above regional competitors, are making exports uncompetitive and pushing factories toward shutdown.


The evidence is stark: when energy was made affordable, exports surged. When prices rose again, growth collapsed. Power policy isn’t just technical—it decides whether industry lives or dies.


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Meanwhile, businesses are left absorbing the cost of inefficiencies: unused capacity, massive losses, and a system that penalizes production.

The result is a steady slide into deindustrialization.


If the solution is already known, why does Pakistan keep choosing the policy that’s driving its industry to the brink?


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