Karachi: Dewan Khalid Textile Mills Limited has reported nil net revenue for the first quarter ended September 30, 2023, as the company's manufacturing operations remain suspended. The textile manufacturer, which has been grappling with financial constraints since halting operations in August 2016, presented its unaudited condensed interim financial statements in compliance with the Companies Act, 2017, and corporate governance codes set by the Securities and Exchange Commission of Pakistan.

The textile sector, a cornerstone of Pakistan's economy, is facing substantial challenges. It accounts for approximately 60 percent of the nation's exports and employs 40 percent of the labor force. However, the sector is currently operating at less than half its capacity, with over 15 million workers, or 19 percent of the labor force, now unemployed. The sector's woes are exacerbated by exchange rate volatility, delayed sales tax refunds, and high power tariffs, which threaten to push manufacturers towards permanent closure. The need for stable economic policies to support the export industries is critical for Pakistan's long-term stability.

The company has prepared its financial statements using the going concern assumption, indicating that it views its current financial difficulties as temporary. Dewan Khalid Textile Mills Limited has approached lenders for liability restructuring and remains optimistic that financial institutions will accept its proposals, allowing operations to resume. According to information available from the Pakistan Stock Exchange (PSX), the company's ongoing challenges reflect broader economic issues impacting the country's industrial sector.

Despite the current difficulties, there is a silver lining for Pakistan's textile industry with the extension of the GSP+ scheme for four more years. This scheme significantly benefits the textile sector, which constitutes more than 80 percent of Pakistan's exports to the EU. To capitalize on this opportunity, the industry requires competitive energy tariffs and liquidity restoration. The government is anticipated to introduce measures such as production incentives, tax cuts, and faster refund processes to foster a sustainable textile industry.

The Board of Directors concluded their report with a prayer for guidance and prosperity, emphasizing the need for unity and harmony in the nation.