Khalid Siraj Textile Mills Limited (PSX: KSTM) has decided to close its mill operations until March 31st, 2023.
In a stock filing, the yarn seller said it has decided to close the mill operations due to prevalent economic issues ailing the country.
“The floods caused the cotton harvests to be devastated. Additionally, the situation has worsened due to political unrest, import restrictions, and an unchecked dollar increase. These factors have increased inflation, undermined the rupee, driven up cotton prices, driven up the cost of electricity per unit, and, most importantly, harmed business confidence,” the filing stated.
“Further, it has been decided to end the lease agreement with M/s. ASM Industries (Private) Limited,” it added.
Besides its defaulter status at PSX, the Company is engaged in the production and sale of yarn and other related operations. Its product range includes carded and combed yarns both for knitting and weaving end-use. The company’s manufacturing facility located in Tehsil Pattoki in Kasur is equipped with modern spinning machinery from Germany, Japan, and Switzerland. The company exports its products to Pakistan and other countries in Europe and the Middle East.
