Strategic Shift After Board Review
Pakistani textile giant shut down its apparel export segment due to multiple reasons. Gul Ahmed Textile Mills Limited announced the closure of its Export Apparel Segment. The decision followed a Board of Directors meeting on September 29, 2025, and came after a comprehensive review of the segment’s performance and future outlook.
Factors Behind the Closure
The Export Apparel Segment, known for its labour-intensive operations, has struggled with sustained margin pressures. Rising energy tariffs, intense regional competition, and the stronger exchange rate severely impacted profitability. Additionally, higher costs of nominated fabrics and government policy changes, including the increase in advance turnover tax, worsened challenges. These combined factors undermined the segment’s cost structure, leading to continued operational losses, according to Mettis Global News.
Positive Financial Impact Expected
According to the company, the strategic exit will improve Gul Ahmed’s overall financial health. By discontinuing this loss-making segment, management expects to reduce borrowing, improve cash flow, and stabilize the balance sheet. This move will also enable greater focus on sustainable and profitable areas of the business.
Focus on Core Business Segments: Pakistani Textile Giant Shuts Its Export Apparel Segment
Gul Ahmed emphasized that the closure only affects the Export Apparel Segment. Its other core operations, including Home Textiles, Spinning, and Weaving, will continue without disruption. These segments remain central to the company’s long-term growth and market positioning.
Compliance with Market Regulations
The company formally notified the Pakistan Stock Exchange Limited of this decision, in compliance with Section 96 of the Securities Act, 2015. Officials confirmed that this strategic realignment aims to position Gul Ahmed for stronger financial stability and long-term growth in its core textile operations.
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