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Karachi, Khalid Siraj Textile Mills Limited, a prominent textile company, has released its Quarterly Progress Report for the quarter ended June 30, 2023, in compliance with PSX Regulation 5.11.2(b). The report highlights the challenges faced by the company due to various factors affecting the textile industry.
The devastating floods in the year 23 resulted in significant losses for the cotton crop, with the number of bales decreasing from 9.0 million in the previous year to less than 4.0 million. The industry also suffered due to political unrest, import restrictions, an increase in the dollar rate, and changes in the industrial electricity export tariff. These factors have led to inflation, a weakened rupee, increased cotton prices, elevated electricity costs, and a decline in business confidence. As a result, many textile mills had to shut down.
The current situation remains challenging, with high political uncertainty, low business confidence, pending regionally competitive electricity tariffs for the export industry, and escalating inflation. The company highlights that the only hope lies in the upcoming cotton crop. If a good number of cotton bales are obtained this year, there is a possibility of resuming operations, provided the government provides certainty and confidence to exporters. The new cotton crop is expected to be in full swing from October 2023 to December 2023.
Khalid Siraj Textile Mills Limited emphasizes the difficulties it faces and expresses concern about being placed on the “defaulter segment.” The company seeks support from the Pakistan Stock Exchange (PSX) and requests the PSX to remove its name from the Defaulter Segment, citing the need for understanding and assistance in these challenging times.
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