A textile company in Punjab, Ashfaq Textile Mills Limited, has decided to suspend the production of 85 Sulzer looms at its Faisalabad factory unit due to weak demand. The company conveyed this information in a notice submitted to the Pakistan Stock Exchange (PSX).
According to the notice, the Board of Directors of Ashfaq Textile Mills Limited, in a meeting held on December 11, 2025, decided that due to unfavorable market conditions, the company would halt production on 85 out of 243 Sulzer looms installed at its production facility located on Km 18, Jaranwala Road, Faisalabad. This reduction in production will decrease the forced sale of fabrics, as demand for manufactured fabrics has sharply declined. The company is also reviewing various strategic alternatives.
Ashfaq Textile Mills Limited was established as a private limited company on January 14, 1988, and later converted into a public limited company. The company produces and sells textiles, while also offering sizing and conversion services.
This development comes at a time when Pakistan’s textile sector, the country’s largest export revenue generator, is facing a slowdown. According to Pakistan Bureau of Statistics (PBS) data, the textile sector declined by 0.15% in July–August FY26 compared to the same period last year.
Recently, Tanveer, Patron-in-Chief of UBGSM and a leader of the Federation of Pakistan Chambers of Commerce & Industry (FPCCI), warned that Pakistan’s textile sector is rapidly deteriorating due to high interest rates and taxation, which are severely impacting the industry. Tanveer noted that exporters in Pakistan face double advance taxation, paying 2% turnover advance tax, which is twice the amount paid by local businesses.
