KARACHI – In a major blow to Pakistan’s textile sector, Ideal Spinning Mills Ltd has announced the permanent shutdown of its spinning unit, citing unsustainable operational losses and surging production costs.
The company informed the Pakistan Stock Exchange (PSX) on Friday that it will now focus exclusively on its weaving and socks divisions, and has initiated steps to dispose of the spinning plant and machinery through sale or other means.
Shareholder Approval Sought
The company stated that an Extraordinary General Meeting (EGM) will be convened to seek shareholder approval for the proposed divestment. Management emphasized that the spinning operations were no longer financially viable due to high input costs and diminishing market margins.
Industry in Crisis
Ideal Spinning’s decision reflects a wider trend in the troubled textile industry, which continues to face headwinds amid declining cotton production, rising energy tariffs, and high borrowing costs. Industry sources report that over 120 spinning mills have already ceased operations in recent months, resulting in significant job losses and reduced export capacity.
Experts have urged the government to take immediate corrective measures, including policy relief, subsidies, and improved access to raw materials, to prevent further industrial decline.
This story has been reported by PakTribune. All rights reserved.