Gul Ahmed Textile Mills Announces Closure of Export Apparel Segment

Gul Ahmed Textile Mills Limited has officially announced the closure of its Export Apparel Segment following a strategic review of its performance. The decision, communicated to the Pakistan Stock Exchange (PSX), comes in response to sustained financial losses driven by a mix of economic and regulatory challenges.

In a meeting held on September 29, 2025, the Board of Directors resolved to discontinue the Export Apparel Segment. According to the company, the unit’s highly labor-intensive structure and ongoing margin pressures made it increasingly unviable.

The Export Apparel Segment has faced continuous operational challenges. These include intense regional competition, a stronger exchange rate, rising costs of nominated fabrics, higher energy tariffs, and policy changes such as the increase in advance turnover tax. Together, these factors have weakened the segment’s cost structure and profitability, leading to ongoing losses.

Strategic Impact on the Company

Gul Ahmed Textile Mills stated that shutting down the Export Apparel Segment will reduce recurring losses, lower borrowing requirements, and improve cash flow management. The company expects the move to strengthen its overall financial position and enable a sharper focus on sustainable growth areas.

The company clarified that the closure applies only to the Export Apparel Segment. Its other core operations, including Home Textiles, Spinning, and Weaving, will continue as part of its long-term growth strategy. These divisions remain central to Gul Ahmed’s business model and future plans.

By exiting a loss-making segment, Gul Ahmed Textile Mills aims to streamline operations and focus resources on profitable business areas. The strategic closure of the Export Apparel Segment is intended to bolster financial stability and align the company’s efforts with more sustainable markets.