Karachi: Gul Ahmed Textile Mills Ltd. has announced the cessation of its Export Apparel Segment operations, a decision finalized during the Board of Directors meeting on September 29, 2025. This move comes as the company grapples with ongoing financial pressures and strategic challenges in the segment.
On September 30, 2025, the company disclosed that the discontinuation aligns with Section 96 of the Securities Act, 2015, and Clause 5.6.1(a) of the Pakistan Stock Exchange Rule Book, marking a significant shift in its operational focus. The Export Apparel Segment, known for its labor-intensive nature, has been under sustained margin pressures. Key factors contributing to this situation include fierce regional competition, a robust exchange rate, recent governmental policy adjustments like the hike in advance turnover tax, escalating costs of nominated fabrics, and increased energy tariffs. These elements have collectively eroded the segment’s cost structure and profitability, leading to continuous operational losses.
According to information available from the Pakistan Stock Exchange (PSX), the strategic decision to close the segment is projected to benefit Gul Ahmed Textile Mills Ltd. by curbing ongoing losses, decreasing borrowing levels, and enhancing cash flow management. The move is anticipated to fortify the company’s financial standing and allow a sharper focus on sustainable growth in its other business areas.
The company clarified that this decision affects only the Export Apparel Segment. Gul Ahmed Textile Mills Ltd. will maintain operations in other core segments, including Home Textiles, Spinning, and Weaving, which are vital to its long-term growth strategy.