Suhail Jute Mills struggles to sell land amid KP uncertainties

October 08, 2026 (MLN): Efforts to sell land to settle dues of creditors, including institutions holding court decrees, made no meaningful progress at Suhail Jute Mills Limited (PSX: SUHJ) in the quarters ended March 31, 2026 and September 30, 2026, according to progress report.

The delay is mainly due to the security situation and political and economic uncertainties in Khyber-Pakhtunkhwa. For the September quarter, the company noted these conditions had worsened as of the date of the report.

The company continued its efforts to dispose of unutilized assets to settle outstanding obligations to creditors. It also has assets available for sale following the merger of (Colony) Sarhad Textile Mills Limited with and into Suhail Jute Mills.

As per plan, the prospective sale of those assets will enable the company to restart operations.

The company continues to explore all avenues to raise funds and hopes the prevailing uncertainties end so it can carry forward its plan.

The principal sponsors continued to substantially increase their financial stake and injected further funds to keep the company afloat during both periods.

The sponsors have financially sustained the company throughout its non-operational period for the benefit of shareholders, employees and creditors. The funds injected are far in excess of their capital holdings, as a commitment to sustaining and reviving the company.

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