Gul Ahmed Textile Mills Limited (GATM), one of Pakistan’s largest textile groups, has announced the closure of its export apparel division after years of sustained losses caused by surging costs, inconsistent government policies, and intensifying competition from regional rivals.
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In a notice to the Pakistan Stock Exchange (PSX) on Tuesday, the company said its Board of Directors resolved on September 29, 2025, to discontinue the segment following a strategic review.
“The decision follows persistent pressures from higher input costs, advance turnover taxes, rising energy tariffs, currency volatility, and margin erosion against regional competitors,” the company stated.
The labour-intensive apparel export business had long struggled to stay profitable, with mounting losses eroding the company’s financial position. Gul Ahmed said the shutdown will cut borrowing requirements, improve cash flow, and strengthen overall stability while allowing focus on core operations in home textiles, spinning, and weaving.
The company also announced plans to establish four new subsidiaries aimed at diversifying operations and entering higher-value segments of the textile and retail supply chain. Details are yet to be disclosed.
Founded in the early 1900s and incorporated as a public company in 1955, Gul Ahmed has evolved into a fully integrated textile conglomerate with strong retail presence through its “Ideas by Gul Ahmed” brand.
The decision comes at a time when Pakistan’s textile sector — the country’s largest export industry — is under severe strain from soaring tariffs, unpredictable taxes, and inflation, while competitors such as Bangladesh and Vietnam consolidate their global edge with lower costs and trade-friendly policies.
Industry experts warn that Gul Ahmed’s exit from apparel exports reflects deeper vulnerabilities across Pakistan’s textile landscape. However, analysts note that by shedding an unprofitable division and strengthening more resilient verticals, the company may be able to offset losses and chart a path to renewed growth.
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