ISLMABAD : M/s Gul Ahmed Textile Mills (GATM), has suspended its business operations of export apparel segment due to internal and external factors including rising financial cost.
In compliance with Section 96 of the Securities Act, 2015 and Clause 5.6.1(a) of the Pakistan Stock Exchange Rule Book, the Company has inform Pakistan Stock Exchange (PSE) that the Board of Directors of Gul Ahmed Textile Mills Limited, in its meeting held on Sep- 29,2025 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.
According to the Company, the Export Apparel Segment, being highly labor-intensive, has faced sustained margin pressures due to a combination of internal and external factors. 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 strategic closure is expected to positively impact the Company by reducing ongoing losses, lowering borrowing levels, and improving cash flow management. This step will strengthen the Company’s overall financial position and enable greater focus on sustainable growth in its other business areas.
The Company has clarified that this decision relates solely to the Export Apparel Segment. The Company will continue its operations in other principal segments, including Home Textiles, Spinning, and Weaving, which remain integral to the Company’s long-term growth strategy. Ends
