Gul Ahmed Textile shuts export apparel segment

September 30, 2025 (MLN): Gul Ahmed Textile Mills Limited (PSX: GATM) has decided to discontinue its Export Apparel Segment following a Board of Directors meeting held on September 29, 2025.

The decision came after a comprehensive strategic review of the segment’s performance and future outlook. 

The Export Apparel Segment, which is highly labour-intensive, has faced sustained margin pressures due to a combination of internal and external factors.

 The company cited persistent challenges, including intense regional competition, a stronger exchange rate, rising costs of nominated fabrics, and elevated energy tariffs. 

Additionally, recent government policy changes, such as the increase in advance turnover tax, have contributed to the difficulties.

 Collectively, these factors have significantly undermined the segment's cost structure and profitability, resulting in continued operational losses. 

Gul Ahmed anticipates that the strategic closure will have a positive impact on its overall financial position by reducing ongoing losses, lowering borrowing levels, and enhancing cash flow management. 

This move is intended to strengthen the company’s financial standing and enable a greater focus on sustainable growth in its other business areas. 

The company clarified that the decision relates solely to the Export Apparel Segment. 

Gul Ahmed Textile Mills Limited will continue its operations in its other principal segments, including Home Textiles, Spinning, and Weaving, which remain integral to its long-term growth strategy. 

The company has informed the Pakistan Stock Exchange Limited of this material information in compliance with Section 96 of the Securities Act, 2015.

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