Arctic Textile Mills Limited, formerly called Khurshid Spinning Mills, has announced the immediate discontinuation of operations at its leasehold spinning unit, citing adverse conditions in Pakistan’s spinning sector.
The listed company, which manufactures and deals in all types of yarn, disclosed the development in its notice to the Pakistan Stock Exchange (PSX) on Thursday.
“The Board of Directors, in its meeting held on June 19, 2025, has decided to discontinue the use of the leasehold spinning unit with immediate effect.
“This decision was taken in view of prevailing adverse conditions in the spinning sector across Pakistan, characterised by declining demand, increased input costs, and persistent market uncertainty. The operations of the leased spinning unit have become commercially non-viable,” read the statement.
The Pakistani textile sector plays a crucial role in the country’s economy, contributing significantly to exports and overall GDP. However, the sector is currently facing challenges, including issues with the Export Facilitation Scheme (EFS) and high energy costs.
Last week, the government, in its federal budget, imposed an 18% sales tax on imported cotton yarn. Hailing the decision, the All Pakistan Textile Mills Association (APTMA) strongly urged the government to extend the 18% sales tax to all yarns and fabrics, whether cotton or polyester, imported under EFS.
Meanwhile, the board of Arctic Textile Mills informed that there will be no material financial impact on the financial position of the company due to the discontinuation of this spinning unit.
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