Karachi, September 30, 2025 – Gul Ahmed Textile Mills Limited has announced the closure of its export apparel segment, citing unsustainable cost pressures that have eroded profitability in recent years.
The decision, formally communicated to the Pakistan Stock Exchange (PSX) on Tuesday, follows a detailed strategic review of the segment’s operations and future viability.
According to the company, the export apparel division has been under persistent strain due to a mix of internal and external challenges. These include soaring energy tariffs, higher costs of nominated fabrics, and policy changes such as the advance turnover tax, which collectively pushed production costs to unmanageable levels. Additionally, the stronger exchange rate and stiff regional competition further reduced the export competitiveness of the apparel segment.
“Despite repeated efforts to improve efficiency, the segment remained loss-making,” the company said, adding that shutting down this export operation will help reduce financial drag on the business.
The closure is expected to strengthen Gul Ahmed’s financial health by minimizing operational losses, lowering dependence on borrowings, and improving cash flow management. This, in turn, will allow the company to channel resources into segments with better growth prospects.
Importantly, Gul Ahmed emphasized that the move affects only the export apparel segment. The company will continue to operate its core businesses, including home textiles, spinning, and weaving, which remain vital to its long-term growth and export strategy in other product categories.