Karachi: The Board of Directors of Dewan Mushtaq Textile Mills Limited has disclosed the company's unaudited condensed interim financial statements for the nine months ending March 31, 2025. The report, dated August 27, 2026, highlights a period of significant challenges for the textile industry in Pakistan, with political and economic conditions adversely affecting business operations.
Due to persistent economic pressures, the Pakistani textile sector, a crucial component of the national economy, is experiencing substantial difficulties. The report identifies higher taxation and the elevated costs of energy resources, such as gas and electricity, as major contributors to the sector's struggles. These factors have resulted in an unsustainable financial strain on textile manufacturers, notably those in the spinning sector.
Operational sales for Dewan Mushtaq Textile Mills Limited during the period were reported as nil, reflecting a prolonged factory shutdown that commenced in July 2016. The company attributes the continued suspension of its manufacturing operations to industry-wide challenges and constraints in working capital. Despite these hurdles, management is pursuing the restructuring of liabilities and remains optimistic about resuming operations in the future.
According to information available from the Pakistan Stock Exchange (PSX), the textile industry is grappling with a competitive global market environment, further exacerbated by domestic economic issues. The company's financial statements have been prepared on a going concern basis, with ongoing negotiations for liability restructuring being a key focus.
The future outlook for the company and the broader textile sector hinges on several factors, including political stability and sound governmental policies. The implementation of favorable measures, such as reducing energy tariffs and rationalizing taxes, is deemed essential for enhancing the competitiveness and viability of Pakistan's textile exports. The company expresses hope for government interventions that could bolster business confidence and support the spinning sector's growth.
In conclusion, the report underscores the importance of strategic policy reforms and initiatives to address the pressing challenges facing the textile industry. The Board of Directors emphasizes the critical need for sustained economic stability and proactive measures to facilitate the sector's contribution to Pakistan's economic progress.