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Lahore’s industries choke on coal Ban: SMEs call for support amid environmental crackdown

October 21, 2025

Muhammad Saleem

Lahore’s food and textile industries are facing mounting challenges due to their reliance on coal and other polluting materials in production.

Speaking to Wealth Pakistan, Shafaqat Ali, a weaving unit owner, said many small and medium textile factories still used coal and outdated boilers in production, but the authorities concerned must understand that switching to cleaner energy sources was a daunting task for SMEs, requiring large investments. He said the textile industry was already grappling with multiple challenges like the high energy costs, declining exports, and tough global competition.

“We want to go green and align our businesses with environmental standards, but we need government support and financial incentives to make it possible,” he added. He explained that the sizing unit, which prepared yarn for fabric weaving, had informed him that the material supply would be delayed, as the environment department had warned them that any smoke emissions could lead to factory closure. He noted that most sizing and processing units used corn cobs, wood, or other materials to energize their boilers.

These alternative arrangements have been made due to the high cost of energy and inconsistent supply of gas, he said. He added that the environment department should adopt a lenient stance, as countless people were directly and indirectly dependent on these units. He warned that the closure of such units would result in mass layoffs, which would be disastrous for the industry, as it was already struggling with soaring inflation.

Muhammad Dilawar, a hotel owner from Rehman Pura, told Wealth Pakistan that the environment department had directed them to make alternative arrangements for processing food, as the use of coal would not be allowed at any cost. He said they couldn't prepare barbecue without using coal and decided to stop serving this item to customers. “Even after investing our blood and sweat in our businesses for years, we continue to face tough restrictions ahead of winter. This has been happening for a couple of years,” he said.

Dilawar said Lahore’s traditional food industry now stood at a turning point. Although most people are using gas cylinders, he explained, the same cannot be used to cook every food item. He further said they also wanted a clean environment, but the closure of businesses was not the appropriate solution to tackle the menace of smog. Pleading anonymity, an officer of the Environment Department told Wealth Pakistan that the Punjab government was monitoring every sector that could contribute to environment pollution.

He said the government could not tolerate those endangering the lives of the people. He said the environment department had connected dozens of factories in some districts to their monitoring system to track smoke emissions. A strict action will be taken against the factories that violate government instructions, he warned. “Only the adoption of smarter practices, cleaner energy and cooperation between the government and businesses can help Lahore breathe again,” he added.

Credit: INP-WealthPk