Gul Ahmed Textile Mills’ board resolved on September 29, 2025, to discontinue the company’s Export Apparel Segment after a strategic review. The decision applies to that segment only: the company said Home Textiles, Spinning and Weaving would continue. As of its report for the nine months ended March 31, 2026, management was still identifying a buyer and deciding which assets to retain or transfer.
What did Gul Ahmed announce?
In a September 29, 2025 disclosure to the Pakistan Stock Exchange, Gul Ahmed Textile Mills Limited said its board had resolved to discontinue Export Apparel operations. The company described the move as the outcome of a strategic review of the segment’s performance and outlook.
This was a segment closure, not an announcement that Gul Ahmed Textile Mills as a whole was shutting down. The company said its Home Textiles, Spinning and Weaving segments would continue. Read the company’s PSX disclosure.
Why did Gul Ahmed close its export apparel business?
The company said the labor-intensive segment had faced sustained margin pressure and continued operating losses. Its disclosure listed several pressures, without quantifying how much each contributed:
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- Intense regional competition and a stronger exchange rate.
- Government policy changes, including an increase in advance turnover tax.
- Rising costs of nominated fabrics and elevated energy tariffs.
Gul Ahmed said these factors had undermined the segment’s cost structure and profitability. The company’s explanation is its stated rationale; the available figures do not independently establish the contribution of each pressure.
How an analyst described the market
Textile analyst Usama R Gurmani, quoted by The Express Tribune, characterized international apparel as a commoditized business with intense price competition and thin margins. That is industry analysis, distinct from the company’s own stated reasons for the closure. Read the newspaper’s coverage.
What happens to the rest of Gul Ahmed?
The company said Home Textiles, Spinning and Weaving would continue. The decision therefore concerned Export Apparel operations, not every business segment or the company’s entire operations.
In its interim report for the nine months ended March 31, 2026, Gul Ahmed said management was identifying a buyer and deciding which assets would be retained or transferred to other segments. That report describes an asset process still being worked through at that date; it does not establish that a sale or transfer was completed. See the interim report.
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What did the company expect financially—and what has been reported since?
In the closure notice, Gul Ahmed expected the move to reduce ongoing losses and borrowing and improve cash-flow management. Those were forecasts, not measured outcomes reported at the time.
Later company-reported figures provide context but do not isolate the effect of the closure:
- For the nine months ended March 31, 2026, total sales in Pakistani rupees fell 16.3% year over year. The company attributed the decline in part to apparel closures and lower spinning sales, alongside broader economic pressures, imported-yarn availability and flood disruption. It would be inaccurate to attribute the full decline to the apparel closure.
- Finance costs fell 30% over the same nine-month period. Gul Ahmed attributed this primarily to lower working-capital requirements following reduced sales volumes and working-capital optimization initiatives—not to the apparel closure alone.
- Gul Ahmed reported consolidated profit of PKR 4.454 billion for FY2025, down 8% from PKR 4.852 billion in FY2024, according to Business Recorder. Those annual results do not quantify savings from the later segment closure. Read the report.
The interim report also said Pakistan’s textile exports totaled USD 13.545 billion for the nine months ended March 2026, down 0.5% from USD 13.614 billion in the comparable prior-year period. This is sector context reported in the company’s filing, not a measure of the closure’s effect.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What is established about the closure’s impact?
The board’s decision, the company’s stated reasons, the continuing segments and the asset-planning status as of March 31, 2026 are documented in company disclosures. The reviewed sources do not separately quantify the closure’s financial effect or establish that the expected savings had materialized. The latest cited status here is the March 2026 interim report; it does not confirm what happened to the assets after that reporting date.
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