Hyderabad Glass Bangle Industry Crisis 2026: High Energy Costs Dim Ramadan
As the holy month of Ramadan progresses, the vibrant streets of Hyderabad’s Choori Gali should be echoing with the clink of glass. However, the Hyderabad glass bangle industry crisis 2026 has cast a dark shadow over this festive season. Soaring gas tariffs and heavy taxation have forced many historic workshops to operate at half capacity, threatening the livelihoods of nearly 200,000 workers who depend on this traditional craft.
The Energy Squeeze: Gas Prices Up 92%
For generations, Hyderabad has been the heart of Pakistan’s glass bangle production. But the sector is now reeling from the withdrawal of energy subsidies under the government’s IMF stabilization program. According to Muhammad Saleem Khan, president of the Hyderabad Glass Bangle Manufacturers Association (HGBMA), gas prices have surged by a staggering 92% over the last two years.
The current cost of gas stands at Rs 2,300 per MMBTU, up from previous years. “Gas that once allowed us to produce bangles costing Rs 50 now results in products sold at Rs 500 in the market,” Khan explained. This massive hike in production costs has made the final product less affordable for the average consumer, especially when compared to cheaper metal alternatives.
A 22% Tax Burden on Artisans
The Hyderabad glass bangle industry crisis 2026 is not just about energy. Manufacturers are also struggling with a heavy tax regime. The industry currently faces:
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18% General Sales Tax (GST) on manufacturing.
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4% Additional Tax for unregistered wholesalers.
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Total Tax Load: An effective 22% burden that squeezes the slim margins of small-scale workshops.
In the cramped rooms of Choori Gali, workers like 50-year-old Farmida Khalid work 12-hour shifts over oil lamps to join 3,000 bangles a day. Despite their hard work, the lack of gas and material in winter, combined with inflationary pressures, means they are barely surviving.
Changing Consumer Trends
With inflation hitting household purchasing power, many Pakistani women are shifting their preferences. Metal bangles have now captured more than 50% of the domestic market. They are cheaper to produce and more durable, making them a more practical choice for many families during the Eid shopping season.
Wholesalers report that orders have plummeted. Where they once shipped 2,000 boxes a month, they are now lucky to receive orders for 300 or 400. This drop in demand has left the Rs 10 billion industry operating at only 30-50% of its total capacity.
The Call for Urgent Relief
The HGBMA is urging the federal government to rationalize gas tariffs. They are asking for a reduction to Rs 1,500 per MMBTU and a more lenient tax structure for small-scale artisans. Without these interventions, industry leaders warn that the iconic glass bangles of Hyderabad—exported to the Gulf, Afghanistan, and beyond—may become a relic of the past.
