Just few days after Pakistani textile exporter, Ghazi Fabrics International announced a partial halt at its weaving unit, another company Janana De Malucho Textile Mills (JDMT) also suspended production, citing severe economic challenges, rising energy costs, and a lack of affordable, high-quality cotton.
The company notified the Pakistan Stock Exchange (PSX) of this decision in compliance with Sections 96 and 131 of the Securities Act, 2015, and Clause 5.6.1 (a) of the PSX Regulations. JDMT stated that it can no longer sustain production due to adverse economic conditions, escalating power costs, limited availability of quality cotton at reasonable prices, and decreasing sales. Additionally, it cited an accumulation of finished goods as the yarn market slows down.
Established in 1960 as a public company under the Companies Act, JDMT specialises in producing super-fine counts of 80s and 100s combed and carded yarn, using extra-long staple cotton sourced from the US and CIS countries. It also produces premium 40/s and 60/s combed yarn for air-jet looms. While the company has suspended production temporarily, management emphasised its commitment to monitor the situation and resume operations when conditions improve.
The cotton crisis in Pakistan is deepening, with data from the Pakistan Cotton Ginner’s Association (PCGA) revealing a significant decline in cotton arrivals. By Sep-end, total arrivals in the country declined by 59 per cent Y-o-Y to 2.04 million bales as against 5.025 million bales in the same period in 2023. This shortage is exacerbating challenges for the textile industry, a key sector in Pakistan's economy.
