Gul Ahmed Shuts Down Export Apparel Segment

Gul Ahmed Textile Mills Limited, one of Pakistan’s most prominent textile manufacturers, has announced the immediate closure of its Export Apparel Segment following a comprehensive strategic review.

Board’s Decision

The company’s Board of Directors made the decision after evaluating the segment’s performance and long-term viability. In an official notification to the Pakistan Stock Exchange (PSX), Gul Ahmed confirmed that the business unit had been incurring sustained operational losses, making it financially unsustainable to continue.

Reasons Behind the Closure

The company highlighted a combination of challenges that weighed down the Export Apparel Segment, including:

• Intense regional competition from other textile-exporting nations.

• The appreciation of the Pakistani rupee, which reduced export competitiveness.

• Government policy changes, particularly the imposition of a higher advance turnover tax.

• Rising costs of nominated fabrics.

• Increased energy tariffs, which added to already high production expenses.

These factors collectively eroded profit margins and created an unfavorable business environment, forcing the company to shut down the segment.

Financial Impact

Despite the closure, Gul Ahmed expressed confidence that the move will ultimately have a positive impact on its financial standing. By exiting this loss-making unit, the company expects to:

• Reduce borrowing requirements

• Improve cash flows

• Strengthen its overall balance sheet

“This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas,” the statement emphasized.

Core Operations to Continue

Importantly, Gul Ahmed clarified that the decision only affects the Export Apparel Segment. All core operations—including Home Textiles, Spinning, and Weaving—will continue without interruption.

The company added that concentrating resources on these stable and profitable divisions will allow it to focus on sustainable growth and long-term competitiveness.