Gul Ahmed Textile Mills shuts down export apparel segment

One of Pakistan’s biggest textile companies, Gul Ahmed Textile Mills Limited (GATM), has announced that it will shut down its export apparel segment. The company shared this update in a notice to the Pakistan Stock Exchange (PSX) on Tuesday.

According to the notice, “The Board of Directors of Gul Ahmed Textile Mills Limited, in its meeting held on 29-Sep-2025, has resolved to discontinue the business operations of the company’s export apparel segment. This decision has been taken following a comprehensive strategic review of the segment’s performance and future outlook.”

The company explained that its export apparel segment is highly labor-intensive and has been under pressure for a long time.

“Persistent challenges include intense regional competition, a stronger exchange rate, recent government policy changes, such as the increase in advance turnover tax, rising costs of nominated fabrics, and elevated energy tariffs. Collectively, these factors have significantly undermined the segment’s cost structure and profitability, resulting in continued operational losses,” the mills stated.

This closure highlights the ongoing difficulties faced by Pakistan’s textile sector, which continues to struggle with high costs, tough competition, and shifting government policies.

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