Gul Ahmed Textile Mills Limited, one of Pakistan’s leading textile companies, has announced the immediate closure of its export costumes.
The decision was made in the Board of Directors of the Company after a strategic review of the ongoing performance of the class and future prospects.
According to an official notice sent to the Pakistan Stock Exchange, the export costumes are struggling with permanent operational losses. The company cited a number of reasons for the closure, including severe regional competition, a strong Pakistani rupee, changes in recent government policy such as high advanced turnover tax, increasing costs of designated clothing, and increased energy prices.
The company said these factors have put significant pressure on the margin and made the segment destabilized.
Gul Ahmed expects the closure to reduce the losses, reduce borrowing, and improve cash flow will have a positive impact on its overall financial health. The company emphasized that the move is limited to the export apparatus class and that all other basic operations, including home textiles, spinning and knitting, will continue as usual.
The statement states that “the move will strengthen the company’s overall financial status and focus more on sustainable growth in its other business areas.”