Bannu Woollen Mills Limited (PSX: BNWM) has decided to temporarily shut down production from 25 March to 5 May 2023.
In a stock filing, the woolen yarn manufacturer said it is unable to continue with the production activities due to the current economic situation and its effect on the ability of the banks to open letters of credit (LCs) for the import of raw materials.
“The production activities of the Company would resume on 6 May 2023. Further update, if any, in this regard will be communicated accordingly,” it added.
The public company is principally engaged in the manufacture and sale of woolen yarn, cloth, and blankets. BNWM’s scrip at the bourse closed at Rs. 21.2, up 0.24 percent or Rs. 0.05 with a turnover of 500 shares on Wednesday.
LCs issue widespread
It is pertinent to mention here that the restrictions on opening Letters of Credit (LCs) have impacted many industries with many companies forced to temporarily halt production activities.
In a recent letter to the State Bank of Pakistan (SBP), the All Pakistan Textile Mills Association (APTMA) said that Cotton scarcity and restrictions on LCs for imports have harmed the textile industry’s exports, resulting in widespread unemployment.
