KARACHI: Pakistan’s leading textile exporting company, Gul Ahmed Textile Mills Limited has announced the closure of business operations of the export apparel segment after a strategic review, citing sustained losses driven by rising costs, policy changes, and regional competition.
The company said the move will cut losses, ease borrowing pressures, and allow greater focus on core operations such as home textiles, spinning, and weaving.
In compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of the Pakistan Stock Exchange Rule Book, Gul Ahmed Textile Mills has revealed this information with the Pakistan Stock Exchange.
In a notice sent to PSX, the company said that the Board of Directors of Gul Ahmed Textile Mills Limited, in its meeting held on Sep 29, 2025 has resolved to discontinue the business operations of the Company’s Export Apparel Segment. “This decision has been taken following a comprehensive strategic review of the segment’s performance and future outlook”, it added.
According to the company, the Export Apparel Segment, being highly labor-intensive, has faced sustained margin pressures due to a combination of internal and external factors.
“Persistent challenges include intense regional competition, a stronger exchange rate, recent government policy changes (such as the increase in advance turnover tax), rising costs of nominated fabrics, and elevated energy tariffs. Collectively, these factors have significantly undermined the segment’s cost structure and profitability, resulting in continued operational losses”, the notice said.
The Board of Directors believed that the strategic closure is expected to positively impact the Company by reducing ongoing losses, lowering borrowing levels, and improving cash flow management and this step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas.
Gul Ahmed Textile Mills has clarified that this decision relates solely to the Export Apparel Segment. The Company will continue its operations in other principal segments, including Home Textiles, Spinning, and Weaving, which remain integral to the Company’s long-term growth strategy.
Meanwhile, Gul Ahmed Textile Mills also released its annual results for the year ending June 30, 2025, reporting an 8 percent drop in consolidated profit to Rs4.454 billion, down from Rs4.852 billion in FY24.
Copyright Business Recorder, 2025
