Saturday, July 20, 2024

Another Major Textile Mill Shuts Down Operations in Pakistan

The ongoing economic crisis in Pakistan is continuing to have an impact on companies. Khalid Siraj Textile Mills Ltd. (KSTM) stated on Monday that it will extend the shutdown of operations until May 31.

Reasons given included the high cost of doing business and import restrictions.

The yarn producer informed the Pakistan Stock Exchange (PSX) of the information in a notice.

“Further to our letter dated February 10, 2023, kindly note that the situation has worsened due to continued political unrest, import restrictions, and an unchecked dollar increase.

These factors have increased inflation, undermined the rupee, driven up cotton prices, driven up the cost of electricity per unit, and, most importantly, harmed business confidence,” read the notice.  

“The mill management of the company has decided to close the mill operations until May 31, 2023,” it added.

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