Karachi: Gulistan Textile Mills Ltd, once a prominent player in the textile industry, has confirmed its non-operational status as it undergoes a court-sanctioned Scheme of Arrangement. According to the company's announcement dated July 14, 2026, the High Court of Sindh at Karachi has approved the Scheme under Section 279 of the Companies Act, 2017, following prior approval from secured creditors and shareholders.

The Scheme entails the sale of all assets of the Company, overseen by an Asset Sale Committee, to settle existing liabilities to secured creditors. The proceeds from these asset sales are distributed among the creditors by the Agent Bank on a pari passu basis, effectively leaving the Company without assets. According to information available from the Pakistan Stock Exchange (PSX), the Company remains non-operational, with no resumption of commercial production or business operations during the quarter ended June 30, 2026.

In compliance with regulatory requirements, Gulistan Textile Mills Ltd has submitted its Quarterly Progress Report through PUCARS, documenting its ongoing non-operational status. The Company has assured stakeholders that future progress reports will be submitted within the prescribed timelines as mandated by PSX Regulation 5.11.1(b).