Gul Ahmed Textile Mills Limited (GATM), one of Pakistan's most prominent textile companies, has resolved to shut down its export apparel business operations. The company informed the Pakistan Stock Exchange (PSX) that the decision follows a comprehensive review showing the segment has been suffering continued operational losses.
GATM stated that the labor-intensive export division could no longer sustain profitability due to heavy margin pressures. It explicitly cited intense regional competition, a stronger exchange rate, and recent government policy changes—such as the advance turnover tax increase—as key challenges. Furthermore, elevated energy tariffs and rising costs for nominated fabrics were singled out for undermining the segment’s cost structure.
Management views this "strategic closure" as a necessity to shore up its financial position. The closure is expected to provide a positive impact by reducing ongoing losses and improving cash flow, allowing Gul Ahmed to concentrate on its profitable core businesses, including spinning, weaving, and home textiles, as well as its extensive retail footprint.
