Crescent Steel & Allied Products Limited (PSX: CSAP) has temporarily shut down its cotton operations till further notice.
In a stock filing to the Pakistan Stock Exchange (PSX), the company said its management has decided to shut down its Cotton Division Plant operations temporarily with immediate effect till further notice due to the current economic situation prevailing in the country, shortage of raw cotton, withdrawal of Zero Rate Industry status, and reduction in demand of the company’s products.
“Steel Division, however, will remain operative. Further update, if any, in this regard will be communicated in due course,” it added.
The announcement comes as Pakistan faces several challenges, including rising debt, low foreign exchange reserves, and an energy shortage, which are forcing businesses to close or limit their operations. In FY23, industrial growth is expected to be negative, as industries are closing down operations due to low demand and a lack of raw material availability.
The textile segment, which continues to be Pakistan’s largest source of export receipts, is feeling the effects of the economic slowdown.
At the time of filing, CSAP’s scrip at the bourse was Rs. 27.88, down 0.25 percent or Rs. 0.07 with a turnover of 4,000 shares on Friday.
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