Ghazi Fabrics International Limited, a Pakistani exporter of fabric to Europe, the USA, and the Far East, has announced that it will be partially halting production activities in its weaving plant, citing challenging economic conditions, soaring power costs, and a shortage of affordable, high-quality cotton.
The company disclosed this in a notice to the Pakistan Stock Exchange (PSX), on Tuesday adhering to regulatory requirements outlined under the Securities Act 2015.
“Due to the prevailing economic conditions in the country, increase in power cost and non-availability of quality cotton at an affordable price, it is limiting production activities for the time being,” Ghazi Fabrics said in its notice to the PSX.
Therefore, the company decided to partially curtail production activities of its Weaving Unit till further notice.
This decision reflects broader issues within Pakistan’s textile sector, where rising operational costs and resource shortages have placed unprecedented strain on production capabilities.
Ghazi Fabrics, which exports fabric to Europe, the USA and the Far East, stated it will monitor the economic landscape to determine its next steps, although production in its weaving unit will remain limited until further notice.
Cotton arrivals in Pakistan declined by 59% by the end of September compared to the same period last year, according to data from the Pakistan Cotton Ginner’s Association (PCGA).
Total arrivals reached 2.04 million bales, down from 5.025 million bales in September 2023, marking a drop of 2.985 million bales.
