Around 40% of Flour Mills Shut in Rawalpindi-Islamabad Region Amid Industry Crisis
Nearly 40 percent of flour mills in the Rawalpindi and Islamabad region have reportedly shut down due to continued financial losses, as industry stakeholders warn of further closures if policy conditions are not improved.
The concerns were highlighted in a letter addressed to Punjab Chief Minister Maryam Nawaz by former Pakistan Flour Mills Association Punjab Vice Chairman Chaudhry Afzal Mahmood.
Industry representatives say the sector is facing a prolonged crisis due to inconsistent wheat policies, uneven distribution of supplies, and administrative controls on pricing.
Mills Suffer Financial Pressure
According to mill owners, many units in the twin cities have been forced to shut operations after recording sustained losses over the past two years. They claim that limited access to wheat and higher transportation costs have made operations financially unviable.
Millers argue that flour production in southern Punjab benefits from easier access to wheat, while mills in Rawalpindi and Islamabad must purchase grain from open markets at higher rates, increasing overall production costs.
They further allege that flour supplied through official channels is sometimes sold at lower prices in their region, creating additional pressure on local businesses.
Supply Limits and Cost Concerns
Industry sources claim that mills are currently receiving limited wheat quotas, making it difficult to maintain consistent production levels.
They also argue that production costs, including electricity, labour, and transportation, exceed controlled selling prices, resulting in estimated losses per unit of production.
Job Losses and Revenue Impact
The closure of flour mills has reportedly led to job losses for thousands of workers and reduced government revenue from taxes linked to the sector, including social security contributions and utility-related charges.
Industry Demands Policy Reform
Flour mill owners are calling for:
- Equal wheat distribution across all regions
- Restoration of quotas for closed mills
- A uniform pricing system for flour
- Reduced administrative controls and a more market-based pricing mechanism
They also suggested that providing low-interest financing for wheat procurement could help stabilize production and improve supply in the market.
Industry representatives have urged the government to take immediate action to prevent further closures, although the Punjab government has not yet issued an official response.
