Pakistan’s textile firm temporarily shuts spinning unit amid ‘unfavourable market conditions’

Crescent Fibres Limited (CFL) has announced a temporary suspension of operations at its spinning unit in Nooriabad, Sindh, citing unfavourable market conditions.

The textile firm disclosed the development in a notice to the Pakistan Stock Exchange (PSX) on Wednesday.

“We inform you that the company operates two spinning units located at Nooriabad, Sind and Bhikki, Punjab. Due to unfavourable market conditions, the management has decided to temporarily suspend operations at the Nooriabad unit,” read the notice.

However, the Bhikki unit continues to operate, the company shared.

“Various strategic alternatives are being evaluated to resume normal operations and restore profitability,” it added.

’Temporary measure’: Another Pakistani textile firm cuts production by up to 50%

Crescent Fibres Limited was incorporated in Pakistan as a public limited company in 1977. The company is engaged in the manufacturing and sale of yarn.

On the financial front, CFL kicked off FY26 on a gloomy note with a radical fall of 34.64% in its topline, which clocked in at Rs1,011 million in 1QFY26. Due to curtailed capacity utilization, the company recorded a gross loss of Rs7.96 million in 1QFY26 against a gross profit of Rs19.9 million posted in 1QFY25.

Operating loss surged by 130.73% in 1QFY26 to clock in at Rs37.64 million.

Overall, the country’s textile sector, which remains Pakistan’s largest generator of export receipts, is facing a downturn.

According to the figures released by the Pakistan Bureau of Statistics, during July-August FY26, the textile sector declined by 0.15%, compared to the corresponding period of last year.