Khalid Siraj Textile Mills Limited (PSX: KSTM) has closed mill operations until May 31st, 2023.
In a stock filing to the Pakistan Stock Exchange (PSX), the company said political unrest, import restrictions and unchecked dollar increase had worsened the situation. It said, “These factors have increased inflation, undermined the rupee, driven up cotton prices, driven up the cost of electricity per unit, and, most importantly, harmed business confidence”.
“As per the aforementioned circumstances, the mill management of the company has decided to close the mill operations until May 31st, 2023,” it added.
Last month, the company announced the closure of mill operations until March 31st, 2023, citing damage to national cotton yield due to floods, and the end of its lease agreement with M/s. ASM Industries (Private) Limited. Today’s announcement of extended closure comes amid higher levels of inflation, PKR devaluation, exorbitant cotton rates, higher cost of electricity, and low business confidence.
Besides its defaulter status at PSX, the company is engaged in the production and sale of yarn and other related operations. Its product range includes carded and combed yarns both for knitting and weaving end-use. The company’s manufacturing facility located in Tehsil Pattoki in Kasur is equipped with modern spinning machinery from Germany, Japan, and Switzerland.