Suhail Jute Mills Limited (PSX: SUHJ) reported persistent difficulties in securing working capital and settling creditor obligations, delaying the resumption of commercial operations.
According to the company’s Progress Report, efforts to sell a 20-acre parcel of land—a critical step in its revival plan—have stalled due to political and economic instability, particularly in Khyber Pakhtunkhwa. The proposed sale was expected to generate Rs 480 million, enabling the company to convert 576 kanals of land into smaller industrial plots with an estimated revenue potential of Rs 2.5 billion.
The revival strategy, scrutinised and approved by the Securities and Exchange Commission of Pakistan (SECP) in April 2023, hinges on land sales to fund liabilities and working capital. Despite owning a fully functional jute manufacturing facility, the company remains unable to restart production without adequate financing.
The company highlighted the continued financial support from its principal sponsors, who have injected funds to sustain operations during the prolonged nonoperational phase.
Suhail Jute Mills expressed cautious optimism, citing improving economic stability and lower mark-up rates as positive indicators for executing its land development and operational revival plan.
However, with ongoing challenges in land sales and funding, the company’s future remains contingent on overcoming these hurdles to resume commercial production and secure stakeholder confidence.
