Karachi: Dewan Khalid Textile Mills Limited released its unaudited condensed interim financial statements for the first quarter ending September 30, 2024. The report, dated April 15, 2026, highlights the ongoing challenges faced by the textile sector amidst Pakistan’s economic pressures.
The textile industry, a cornerstone of Pakistan’s economy accounting for nearly 60 percent of exports and 40 percent of the labor force, continues to struggle with rising production costs and liquidity issues. The discontinuation of regionally competitive energy pricing and policy changes affecting domestic Export Financing Schemes (EFS), coupled with high interest rates and delayed government refunds, have severely impacted the sector’s cost competitiveness.
Dewan Khalid Textile Mills Limited reported no net revenue for the first quarter due to the continued suspension of its manufacturing operations since August 2016. The company cited a liquidity crunch and working capital constraints as reasons for the prolonged shutdown. Despite these challenges, the financial statements have been prepared under the going concern assumption, with the company seeking further restructuring of its liabilities from lenders.
According to information available from the Pakistan Stock Exchange (PSX), Dewan Khalid Textile Mills Limited’s accumulated losses increased from 905.10 million rupees in June 2024 to 911.70 million rupees in September 2024, indicating a very large or significant move. The surplus on revaluation of property, plant, and equipment showed a decrease from 665.53 million rupees to 663.35 million rupees, marking a minor move.
The company remains hopeful that its restructuring proposals will be accepted by financial institutions, allowing for the resumption of operations. However, the challenges posed by inconsistent policies, rising energy prices, and geopolitical tensions remain formidable.
Dewan Khalid Textile Mills Limited’s financial position as of September 30, 2024, shows total assets of 738.27 million rupees, down from 745.42 million rupees in June 2024. The company’s current liabilities increased slightly from 708.14 million rupees to 710.66 million rupees, while its non-current liabilities decreased marginally from 45.74 million rupees to 44.85 million rupees.