Arctic Textile Mills Ltd. has announced the discontinuation of operations at its leased spinning unit. The decision, approved by the company’s Board of Directors on June 19, comes as the venture has become commercially unviable due to rapidly worsening market conditions.

This move reflects the severe challenges currently gripping Pakistan’s textile spinning sector. The industry is grappling with a combination of weak domestic and international demand, coupled with persistent increases in input costs and broader economic uncertainty. These factors have collectively squeezed profit margins across the entire textile industry.

Despite the closure of the leased unit, Arctic Textile Mills emphasized that this decision is not anticipated to materially affect its overall financial position. This suggests that, under the prevailing difficult market circumstances, the spinning unit was not a significant contributor to the company’s profitability. The closure underscores the widespread difficulties faced by textile manufacturers in the current economic climate.