Muhammad Latif stays in his neat office these days, upstairs from the vast textile factory he founded in 1975. Until a few years ago, he says, his business, Chenab Ltd., made high-end sportswear and bed linen for some of America’s best-known retailers, from Macy’s to Tommy Hilfiger to Victoria’s Secret, in this industrial city in central Pakistan. A workforce that peaked at 14,000 fed rolls of cloth into state-of-the art Italian and German machines or sewed garments on sprawling automated production lines. Today, crippled by the shortages of electricity that have paralyzed this country in the past five years, most of the machinery stands idle, and the staff has shrunk to 4,500. Sales for the year ended in June are down nearly 75% to 2.17 billion Pakistani rupees, or about $20 million, from 2008, according to the company. “I don’t go downstairs. I get depressed there,” Mr. […]