Gul Ahmed Textile Mills Limited, a leading textile manufacturer in Pakistan, has officially announced the immediate closure of its Export Apparel Segment, following a strategic decision by the company’s Board of Directors. In a notice submitted to the Pakistan Stock Exchange (PSX), Gul Ahmed revealed that its Export Apparel Segment has been experiencing sustained operational losses, making continued operations financially unviable.
The company cited a range of factors contributing to the segment’s under performance. Intensifying regional competition in the global textile market. Appreciation of the Pakistani rupee, reducing export competitiveness. Higher advance turnover tax introduced by recent government policies. Rising input costs, particularly for nominated fabrics. Increased energy tariffs, impacting production expenses. These economic and industry-specific challenges have eroded profit margins, forcing the company to reassess the segment’s viability.
Gul Ahmed stated that the decision to shut down the Export Apparel Segment is expected to improve its overall financial health. The company anticipates the reduction in operational losses, lower dependency on borrowing, and enhanced cash flow and liquidity. The company was quick to clarify that this strategic move will not affect its core textile operations. Gul Ahmed will continue to operate its Home Textiles, Spinning, and Weaving divisions as usual, with renewed focus on optimizing performance and ensuring long-term growth. “This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas,” the official statement concluded.
