ISLAMABAD: A leading textile company in Pakistan announced in a statement released to the Pakistan Stock Exchange (PSX) on Wednesday it would partially shut down operations due to declining market conditions.
Pakistan’s textile and clothing industry plays a vital role in sustaining its economy since it accounts for more than 60 percent of the country’s total exports. According to a market and consumer data platform, Statista, Pakistan was among the top 10 global textile exporters in 2021 with a value of about $9 billion.
However, the country is currently witnessing economic turmoil amid energy shortages and a major balance of payments crisis. To mitigate the situation, the government has started imposing curbs on the industrial sector to reduce the size of its import bill. As a result, many companies have been pushed to limit or suspend their operations.
“The company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division,” Nishat Chunian Limited (NCL) said in a PSX filing on Wednesday. “[It] has decided to temporarily close 51,360 spindles after one month due to market conditions.”
The firm added its remaining units would operate as usual, and the spindles would be restarted as soon as there was an improvement in the market conditions.
Earlier this month, another textile company, Kohinoor Spinning Mills Limited (KOSM), also announced in a statement to the PSX it had decided to temporarily shut down operations “due to the prevailing global and economic downturn, overdue plant maintenance, and high cost of production and low price and demand.”
Aside from the textile sector, other companies have also suspended operations in the country, including Indus Motor Company and Pak Suzuki Motor Company Ltd, among others.
