The Board of Directors of Gul Ahmed Textile Mills Limited, in a meeting held on September 29, 2025, resolved to discontinue the business operations of the company’s Export Apparel Segment, as per a filing submitted on Tuesday.
The company said the decision follows a comprehensive strategic review of the segment’s performance and future outlook.
The Export Apparel Segment, being highly labour-intensive, has faced sustained margin pressures due to a combination of internal and external factors. Key challenges include intense regional competition, a stronger exchange rate, recent government policy changes such as the increase in advance turnover tax, rising costs of nominated fabrics, and elevated energy tariffs.
“Collectively, these factors have significantly undermined the segment’s cost structure and profitability, resulting in continued operational losses,” the company said.
The strategic closure is expected to reduce ongoing losses, lower borrowing levels, and improve cash flow management. Gul Ahmed Textile Mills anticipates that this step will strengthen the company’s overall financial position and allow greater focus on sustainable growth in its other business areas.
The company further clarified that this decision pertains solely to the Export Apparel Segment. All operations in other principal segments, including Home Textiles, Spinning, and Weaving, will continue uninterrupted, as they remain integral to the company’s long-term growth strategy.
