Karachi: The management of Khalid Siraj Textile Mills Limited has issued a directive for a compulsory buy-back, citing the severe economic conditions affecting the textile industry in Pakistan. According to information available from the Pakistan Stock Exchange (PSX), the company highlighted multiple challenges, including high electricity costs and interest rates, that have prompted numerous textile mills to cease operations.

The regional tariff for electricity in many parts of the world stands at approximately 9 cents per unit, whereas in Pakistan, it soars to over 17 cents. This discrepancy poses significant competitive challenges on the international stage. The Pakistani government has acknowledged the issue and expressed intentions to address the high tariffs, but solutions have been consistently delayed.

In addition to economic hurdles, political instability continues to plague the industry. The management of Khalid Siraj Textile Mills is hopeful that the upcoming agreement with the International Monetary Fund (IMF) will usher in political stability and economic policies favorable to export-driven sectors.

The company has expressed a strong commitment to resuming production as soon as conditions improve, emphasizing the need for supportive economic policies and a stable political environment. They have also appealed to the management of the Pakistan Stock Exchange for patience during these turbulent times and have reiterated their dedication to delivering value to their shareholders.

Furthermore, Khalid Siraj Textile Mills has requested updates on outstanding dues from the Exchange, indicating ongoing financial negotiations amidst these challenging economic conditions.