Pak Leather Crafts Limited (PLCL), a manufacturer and exporter of leather goods, has announced to downsize its present operations and diversify to other businesses.
The listed company, engaged in leather tanning, and manufacturing of leather garments, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Friday.
“The board made some strategic decisions for the revival of the company,” read the statement.
“The decisions include but not limited to downsizing the present operations, diversifying to other manufacturing lines of business, warehousing or supply chain management.”
PLCL’s board has also decided on an alternate option to dispose of the company’s assets located at Plot 18, Sector 7-A Korangi Industrial Area, Karachi.
The assets comprise leasehold land, building on leasehold land and plant and machinery.
“Further, simultaneously an economical portion of the said assets be acquired, from the prospective purchaser, for the continuation of uninterrupted business/manufacturing activities of the company,” PLCL said.
The company said the decision is subject to necessary approval of shareholders.
In recent months, a number of Pakistani companies have decide to either shut down operations or pursue the layoff route owing to high tax rates and spiralling costs.
Earlier, media reported that Engro Corp, a major conglomerate in Pakistan with a market cap of over $580 million, has cut jobs across its trading, logistics, and pesticide businesses as well as some of its functional departments. The company severed ties with over a 100 employees across multiple business lines, the report added.
Similarly, Amreli Steels reduced its production capacity by 30%, but an official – not authorised to speak to the media on the matter – indicated that over 300 staff members were let go across its divisions.
These announcements highlight the issues facing Pakistan’s economy that announced its GDP grew by 3.07% in the April-June quarter of 2023-24.
However, the growth has come largely on the back of agriculture as industrial activity contracted 3.59% during the three-month period, a statement by the National Accounts Committee showed. This was the sector’s third contraction on a quarterly basis during the fiscal year.
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