In a setback for Pakistan’s textile sector, Colony Textile Mills Limited (CTM), a local yarn manufacturer, has announced to shut its weaving division due to “multiple prevailing challenges”.
The listed company shared the development in its notice to the Pakistan Stock Exchange (PSX) on Friday.
“In view of the multiple prevailing challenges as described in the company’s earlier reports, the company has decided to shut down its ‘Weaving Division’ with effect from 31st January 2025,” read the notice.
The management, however, is looking for different sustainable plans for the division and is considering running the unit either in parts or whole in case of any viable opportunity, it added.
Established under the repealed Companies Ordinance, 1984 (now Companies Act, 2017) in 2011, CTM manufactures and sells yarn, fabric and garments, while also trading in real estate.
As per the company’s latest financial results, Colony Textile Mills posted a loss of Rs615.7 million during the quarter ending September 30, 2024.
In its last quarterly report, the company highlighted multidimensional challenges facing the country’s textile industry, causing problems to compete both locally and internationally.
“These problems encompass reduction of demand locally as well as globally, high rate of inflation, high rate of raw materials, high cost of energy and labour, volatility of exchange rates and escalation of government taxes.
“Textile sector is further under pressure due to international recession,” it added.
Earlier this week, the All Pakistan Textile Mills Association (APTMA) sought intervention from the Federal Board of Revenue (FBR) to rescue the textile industry by restoring a level playing field for local inputs, ensuring timely and full refunds.
APTMA stressed that such action is crucial to safeguarding Pakistan’s textile sector and its significant contributions to the national economy.
Comments
Comments are closed for this article.