April 08, 2024 (MLN): Khalid Siraj Textile Mills Limited (PSX: KSTM) continues to experience a suspension of operations due to high electricity rates of around 19 cents, compared to foreign competitors who utilize energy at 7 cents, as disclosed by the company in its latest progress report issued to the local bourse today.
Apart from the high electricity charges, the company is facing additional hurdles due to high interest rates and low demand.
KSTM has further highlighted that it had historically benefited from government policies providing regional competitive energy rates.
However, these favorable conditions have been altered due to commitments made to the International Monetary Fund (IMF).
“The government has time to time expressed its deepest concerns about fixing this problem but due to a caretaker setup, nothing concrete has been done,” the notice further reads.
On a positive end, the company expresses optimism that apolitical stability will be seen which will then help us control all the above-mentioned reasons
Additionally, the management is working very positively and intends to restart production as soon as possible.
