Arctic Textile Mills Ceases Operations at Spinning Unit

Arctic Textile Mills Limited, previously known as Khurshid Spinning Mills, has declared an immediate halt to operations at its leased spinning facility, citing unfavorable conditions prevalent in Pakistan’s spinning industry.

The publicly traded firm, which specializes in the production and trade of diverse yarn types, communicated this decision in a notification to the Pakistan Stock Exchange (PSX) on Thursday.

Board Decision

“During a meeting on June 19, 2025, the Board of Directors resolved to discontinue activities at the leasehold spinning unit with immediate effect,” the statement read.

“This decision stems from the challenging circumstances currently affecting Pakistan’s spinning sector, marked by diminishing demand, escalating input costs, and ongoing market instability. Consequently, the leased spinning unit’s operations have become financially unviable.”

Challenges in Pakistan’s Textile Sector

The textile sector in Pakistan is a vital component of the nation’s economy, making substantial contributions to both exports and overall GDP. However, the industry is currently grappling with several difficulties, notably complications related to the Export Facilitation Scheme (EFS) and elevated energy expenses.

The government recently enforced an 18% sales tax on imported cotton yarn in its federal budget. The All Pakistan Textile Mills Association (APTMA) welcomed this move and strongly encouraged the government to broaden the 18% sales tax to encompass all yarns and fabrics, whether cotton or polyester, imported under the EFS.

Arctic Textile Mills’ board has indicated that the cessation of operations at this spinning unit will not have a significant monetary impact on the company’s financial standing.