Pakistan’s textile industry hit by rising energy costs
Jan 14, 2025
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A textile firm owner in Pakistan shares her struggle with skyrocketing energy costs, emphasizing the impact on local businesses and employment. The Pakistan Textile Council raises alarms over a potential energy crisis that could cripple manufacturing. Meanwhile, a wildfire expert discusses California's escalating fire risks due to climate change and inadequate safety measures. The podcast also touches on global electric vehicle sales and trade tensions, painting a vivid picture of economic challenges and environmental concerns affecting industries worldwide.
Pakistan's textile industry is under threat due to rising energy costs, risking significant job losses and economic instability.
California's wildfire risks have intensified from prolonged dry conditions and inadequate infrastructure, highlighting urgent needs for improved safety measures.
Deep dives
Pakistan's Energy Crisis Threatens Textile Industry
Pakistan faces a looming energy crisis that threatens the survival of its textile sector, which is crucial to the economy. The chairman of the Pakistan Textile Council warned that exorbitant energy costs could force many manufacturers to shut down, causing significant job losses. With the textile industry contributing 60% to the nation's export earnings and employing over 15 million workers, rising energy prices are having a profound impact on small businesses. Individual owners, like Khatija, reported decreased orders and increased operational costs, highlighting the dire need for urgent policy adjustments to sustain growth and prevent widespread unemployment.
California Wildfires Exacerbated by Climate Conditions
The recent wildfires in California have been intensified by a combination of dry conditions and seasonal high winds, leading to catastrophic damage and economic losses. Experts pointed out that insufficient rainfall since May has left the ground extremely dry, making it easier for fires to spread rapidly, particularly in densely populated areas like Pacific Palisades. The area’s older homes, not built to modern wildfire standards, have further increased vulnerability to fires. Despite improvements in utility company safety measures, the ongoing extreme conditions pose significant risks that remain difficult to fully mitigate.
Spain's New Property Tax Aims to Address Housing Crisis
Spain plans to impose a new property tax on non-EU buyers to tackle the pressing housing crisis affecting locals. The Prime Minister emphasized that many homes purchased by non-EU residents are investment properties that exacerbate the housing shortage for Spaniards. In 2023, around 27,000 homes were sold to non-EU buyers, yet critics argue that this is a relatively small figure compared to the total housing market. Observers suggest that simply increasing taxes on a limited number of transactions will not effectively address the broader issue of housing supply shortages that persist across the country.
We're living hand to mouth and having to borrow money from friends to pay the electric bills." These are the words of a woman who runs a textile firm in Pakistan. The Pakistan Textile Council has written to the government, warning that the country faces an energy crisis that could force manufacturing companies to shut down.
Sam Fenwick is joined by a California wildfire expert who has been at the forefront of modelling high-risk areas for years.
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