Gul Ahmed Textile Mills Limited (GATM), one of the country’s largest textile mills, has announced the discontinuation of its export apparel segment, citing persistent operational losses amid rising costs, policy changes, and regional competition.
The listed company disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Tuesday.
“The Board of Directors of Gul Ahmed Textile Mills Limited, in its meeting held on 29-Sep-2025, has resolved to discontinue the business operations of the company’s export apparel segment. This decision has been taken following a comprehensive strategic review of the segment’s performance and future outlook,” read the notice.
The textile giant shared that its export apparel segment, being highly labour-intensive, has faced sustained margin pressures due to a combination of internal and external factors.
“Persistent 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,” Gul Ahmed said.
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The company was of the view that the ‘strategic closure’ is expected to positively impact its financials by reducing ongoing losses, lowering borrowing levels, and improving cash flow management.
“This step will strengthen the company’s overall financial position and enable greater focus on sustainable growth in its other business areas.
Gul Ahmed clarified that the decision relates solely to the export apparel segment and that it will continue its operations in other principal segments, including home textiles, spinning, and weaving.
Gul Ahmed group has been operating as a textile trader since the 1900s. However, the group commenced its manufacturing operations as Gul Ahmed Textile Mills (GATM) in 1953. It turned into a public limited entity in 1955.
GATM is a composite textile mill engaged in the manufacturing and sale of textile products. Besides having a strong presence in the manufacturing sector, the company has a foothold in the retail business too.
The retail business started in Karachi and stretched to more than 40 stores across the country offering products ranging from fashion and clothing to home accessories.
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