Gul Ahmed Textile Mills Limited, a leading name in Pakistan’s textile industry, has officially announced the closure of its Export Apparel Segment, effective immediately.
The decision follows a comprehensive strategic review by the company’s Board of Directors, prompted by ongoing operational losses and mounting external pressures. In a notice to the Pakistan Stock Exchange, Gul Ahmed cited several contributing factors: fierce regional competition, a stronger Pakistani rupee, recent government policy shifts including higher advance turnover tax, rising costs of nominated fabrics, and increased energy tariffs.
These challenges have significantly eroded profit margins, rendering the segment unsustainable. However, the company views this move as a step toward financial recovery—aiming to reduce losses, lower borrowing, and improve overall cash flow.
Importantly, Gul Ahmed clarified that this closure applies solely to the Export Apparel Segment. All other core operations—Home Textiles, Spinning, and Weaving—will continue without disruption.
“This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas,” the official statement affirmed.