A leading textile manufacturer in Karachi has announced the closure of its operations, citing massive financial losses due to a lack of orders and soaring production costs, Business Recorder reported.

“Till July 31 will be your last day and all your dues will be paid by August 10,” Naz Textiles (Private) Ltd, a major textile unit, informed its workers in an official notice on July 1.

Muhammad Javed Bilwani, the chief coordinator for All Export Associations of Pakistan, warned that more industrial units were likely to follow suit in the coming months.

Bilwani attributed the crisis to a perfect storm of high taxation, skyrocketing fuel, electricity and gas prices, which have severely impacted industrial production. He argued that the government’s policies, including the implementation of a “super tax” and the scrapping of export facilitation schemes, have further crippled the export industry.

In the handout, the company informed all its staff about its decision to seek alternative jobs, as it offers a one-month period till July 31.

“This budget will be historically remembered. Even reversing the decision will not help as confidence is lost. It’s all over for textile players across all supply chain. In fact for industrialization as a whole,” Bilwani said, painting a bleak picture for the future of Pakistan’s exports.