Khalid Siraj Textile Mills Reports Challenges in Resuming Production Due to Cost and Demand Issues

Karachi, Khalid Siraj Textile Mills Limited, in its progress report for the quarter ended March 31, 2024, outlined significant challenges hindering the restart of its production operations. The company identified high electricity costs, elevated interest rates, and low demand as the primary obstacles in its path to operational resumption.

The management expressed its commitment to exploring all possible avenues to restart production. However, the cessation of government policies, which provided the export sector with regionally competitive energy rates for decades due to IMF requirements, has placed the company in a difficult position. Currently, the textile sector is experiencing widespread shutdowns, indicating a sector-wide crisis. The cost of electricity, which stands at approximately 19 cents, renders manufacturing non-viable compared to competitors who enjoy energy rates as low as 7 cents.

The report highlighted that despite the government’s acknowledgment of these issues and its expressions of intent to resolve them, the temporary caretaker government setup has delayed substantive action. The company remains hopeful for political stability, which it believes will address the root causes of its challenges.

Khalid Siraj Textile Mills’ management is actively working towards a solution and plans to resume production as soon as the circumstances allow.