Karachi: Khyber Textile Mills Limited has released its unaudited financial statements for the first quarter ending September 30, 2026, on October 30, 2026. These statements reveal that the company continues to grapple with significant obstacles, primarily due to ongoing banking litigation and subsequent credit restrictions that have forced the closure of its textile production facilities.
In a strategic pivot, the Board of Directors has approved the repurposing of a considerable portion of the company's vacant land for agricultural use. This initiative includes the operation of a livestock farm, focusing on the purchase, rearing, and sale of cattle. The cultivation of fodder on company land has further contributed to reducing operational costs. Additionally, renting out vacant buildings and warehouses has provided a steady stream of income, which is being reinvested into the company's operations.
According to information available from the Pakistan Stock Exchange (PSX), Khyber Textile Mills reported administrative expenses of 5.77 million Rupees for the quarter, a decrease from the 6.66 million Rupees recorded in the same period last year. Despite these cost management efforts, the company posted an operating loss of 5.77 million Rupees, compared to a loss of 6.66 million Rupees in the corresponding quarter of the previous year. Rental income contributed 1.91 million Rupees to the company's revenue, reducing the loss before taxation to 3.86 million Rupees, down from 4.68 million Rupees last year.
The primary impediment to resuming textile production remains the company's restricted access to credit facilities, a consequence of unresolved banking litigation over alleged liabilities. These constraints prevent the completion of essential modernization and replacement processes critical for restarting production. Despite the financial hurdles, the company is maintaining its operations, generating revenue, and fulfilling its tax obligations.
The Board remains committed to navigating these challenges, leveraging available resources to safeguard the company's interests while continuing to defend its position in court.