Karachi: Dewan Mushtaq Textile Mills Limited has released its half-yearly report for the period ending December 31, 2024, revealing a continued suspension of manufacturing operations due to financial constraints. The company has not resumed its operations since shutting down in July 2016, a situation exacerbated by liquidity issues and working capital shortages.

The report, dated August 13, 2026, offers insights into the ongoing economic and industrial challenges facing Pakistan's textile sector. The textile industry, which accounts for approximately 60 percent of the country's exports and employs around 40 percent of the labor force, is grappling with high production costs fueled by the discontinuation of regionally competitive energy pricing, elevated interest rates, and delayed government refunds. These factors have significantly impacted the cost competitiveness of Pakistan's textile industry.

For the half-year ended December 31, 2024, Dewan Mushtaq Textile Mills Limited reported no revenue due to the factory shutdown. The company's auditors have expressed concerns regarding the going concern assumption due to the closure of operations and defaults in repayment of restructured liabilities, as outlined in their review report. Despite these challenges, the financial statements have been prepared on a going concern basis as the management engages with lenders for further restructuring of liabilities without markup.

According to information available from the Pakistan Stock Exchange (PSX), Dewan Mushtaq Textile Mills Limited's financial position highlights accumulated losses of 735.66 million rupees, up from 718.90 million rupees as of June 30, 2024. The company's total assets stood at 802.31 million rupees, a decrease from 822.53 million rupees recorded in the previous period.

The company's financial results show a loss after taxation of 19.38 million rupees for the half-year ended December 31, 2024, compared to a loss of 11.98 million rupees during the same period in 2023. The increase in administrative and general expenses further contributed to the operational losses.

As the management remains hopeful for a restructuring agreement, the future of Dewan Mushtaq Textile Mills Limited continues to hinge on successful negotiations with creditors and the ability to address the financial hurdles that have persisted since the factory's initial closure.