Pakistan’s smaller textile companies are curtailing production or selling assets to pay debt after high energy and borrowing costs hurt businesses.

Ghazi Fabrics International Ltd. on Tuesday said it would partially curtail the production of its weaving unit because of the prevailing economic conditions, increase in the cost of electricity and non-availability of quality cotton at affordable price. Nazir Cotton Mills Ltd. has decided to sell obsolete machinery to pay its debt, said the company in a separate filing to Pakistan Stock Exchange.

Prime Minister Shehbaz Sharif’s government has raised energy prices to comply with conditions set by the International Monetary Fund for the current $7 billion loan program. Now, electricity prices are higher than house rents for some.

The nation’s economy grew by 3.1% in the year ended July but the industrial sector contracted. Business people and consumers have protested high costs across the nation in recent months.  

Consistent high inflation adversely impacted the purchasing power of consumers, which resulted in loss of business, Bata Pakistan Ltd. said in its quarterly report. The company’s quarterly net income dropped to the lowest in almost two years, according to data compiled by Bloomberg. Nazir Cotton’s losses almost doubled in the quarter-ended September.