Gul Ahmed Textile Mills Limited (GATM), a major textile giant in Pakistan, has announced it will shut down its export apparel unit after years of mounting losses.
In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, the company said its Board of Directors approved the closure during a meeting on September 29. The step came after a strategic review of the segment’s performance and outlook.
According to the notice, the export apparel business was highly labour-intensive and had suffered continuous pressure on profit margins.
The textile giant cited multiple challenges, including regional competition, a stronger exchange rate, higher advance turnover tax, rising costs of nominated fabrics, and elevated energy tariffs. These factors combined to make the segment unsustainable.
The company described the move as a “strategic closure” aimed at improving financial health by reducing ongoing losses, lowering borrowing levels, and strengthening cash flow. Gul Ahmed clarified that the decision only affects its apparel export business, while operations in other core areas such as home textiles, spinning, and weaving will continue without disruption.
The group has a long history in the textile sector. It began as a trading business in the 1900s, established Gul Ahmed Textile Mills in 1953, and converted it into a public limited company two years later. Today, the textile giant runs a composite textile mill and operates more than 40 retail stores across Pakistan, offering fashion apparel, home textiles, and accessories.
Meanwhile, Pakistan’s textile exports overall have shown growth. The Pakistan Bureau of Statistics (PBS) reported a 9.38% increase in exports during the first nine months of the current financial year, reaching $13.61 billion compared to $12.44 billion in the same period last year.
Industry experts believe Gul Ahmed’s decision highlights the growing cost pressures in the sector but also signals a shift toward focusing on stronger business segments.
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