Karachi: Gulistan Spinning Mills Ltd., a non-operational entity, continues to undergo significant restructuring as it remains subject to a court-sanctioned Scheme of Arrangement, according to a progress report dated October 14, 2026. The Scheme, approved under Section 279 of the Companies Act, 2017, involves the sale of all company assets to settle existing liabilities, a process overseen by the High Court of Sindh at Karachi.

According to information available from the Pakistan Stock Exchange (PSX), the Asset Sale Committee has initiated the liquidation of Gulistan’s assets, with proceeds being distributed by an Agent Bank among secured creditors on a pari passu basis. This development follows approval from both secured creditors and shareholders, concluded in court-chaired meetings, to facilitate asset liquidation for liability settlement.

The quarterly report for the period ending September 30, 2026, indicates that Gulistan Spinning Mills Ltd. has remained non-operational throughout the quarter. No commercial production or business operations have been resumed, and no significant changes in operational status were reported compared to the previous quarter.

Despite the ongoing asset liquidation, no measures have been taken towards the commencement or resumption of business operations. The company plans to explore strategic options in the future, contingent on regulatory approvals and resource availability, although specific timelines for such evaluations remain undisclosed.