Gul Ahmed Textile Mills Limited, one of Pakistan’s leading textile companies, has announced the immediate closure of its Export Apparel Segment.
The decision was made by the company’s Board of Directors after a strategic review of the segment’s ongoing performance and future prospects.
According to an official notice sent to the Pakistan Stock Exchange, the Export Apparel Segment has been struggling with persistent operational losses. The company cited several reasons for the closure, including intense regional competition, a stronger Pakistani rupee, recent government policy changes such as higher advance turnover tax, rising costs of nominated fabrics, and increased energy tariffs.
These factors, the company said, have put significant pressure on margins and made the segment unsustainable.
Gul Ahmed expects the closure to have a positive impact on its overall financial health by reducing losses, lowering borrowing, and improving cash flow. The company emphasized that this move is limited to the Export Apparel Segment and that all other core operations, including Home Textiles, Spinning, and Weaving, will continue as usual.
“This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas,” the statement read.
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