January 04, 2024 (MLN): Khalid Siraj Textile Mills Limited (PSX: KSTM) continues to face a suspension of operations, citing the impracticality of operating with electricity rates around 19 cents, especially when competitors are utilizing energy at 7 cents, as disclosed by the company in its latest progress report issued to 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 stated that the company has 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 after the February 2024 elections, some political stability will be seen, which will then help it to control all of the above hurdles.
Additionally, the management is working very positively and intends to restart production as soon as possible.
