Karachi: Dewan Salman Fibre Limited, once the largest polyester and sole acrylic manufacturing entity in Pakistan, has reported a loss after taxation of Rs 131.786 million for the financial year ending June 30, 2026. This marks a significant reduction from the previous year’s loss of Rs 380.033 million. The financial results were released in the company’s thirty-seventh annual report on October 7, 2026.
The company’s operational closure continued throughout the fiscal year, resulting in nil turnover, as disclosed in the directors’ report. The ongoing closure has led to a substantial deficit in the domestic supply of polyester and acrylic fibers, which is being compensated by increased imports. This situation places a significant burden on the country’s foreign exchange reserves and affects employment opportunities in the local manufacturing sector.
According to information available from the Pakistan Stock Exchange (PSX), Dewan Salman Fibre Limited is listed in the textile sector. The company’s financial statements have been met with an adverse opinion from auditors, primarily due to the management’s use of the going concern assumption. The auditors have expressed concerns regarding several aspects, including the lack of provision for markup and doubtful debts, as well as issues related to investment valuation and inventory classification.
The global polyester staple fiber market experienced a volatile year, influenced by fluctuating crude oil prices and a cautious demand in the downstream textile sector. In Pakistan, there was a noted recovery in polyester consumption, but domestic production fell to a five-year low, increasing the reliance on imports. The industry was particularly affected by international price movements and exchange rate fluctuations.
Dewan Salman Fibre Limited’s management has been actively engaging with financial institutions to propose restructuring plans aimed at reviving operations. However, these efforts have yet to yield the desired outcomes. The management remains optimistic about the acceptance of their proposals and continues to work towards a positive turnaround.
Despite the challenges, the company is striving to address significant risks, including intense international competition, currency depreciation, and limited banking facilities. As the company navigates these uncertainties, its future remains contingent upon successful restructuring and market recovery.