Zahidjee Textile Mills Limited shut down a weaving unit featuring 262 looms, as stated in a filing sent to the Pakistan Stock Exchange, representing another shift in Pakistan's textile manufacturing industry.
Through a material information notice on October 16, 2026, the company told shareholders and the public that the shutdown stemmed from operational adjustments tied to business needs and current operating environments.
The notice, released under provisions of the Securities Act, 2015, along with Pakistan Stock Exchange regulations, omitted the facility location, worker headcount impacted, and financial consequences of the move.
Zahidjee Textile Mills kept details private regarding future plans for the plant or potential fallout for its remaining operations.
Textile industry faces mounting pressure
The stoppage arrives while textile producers across Pakistan battle rising operational expenses and foreign competition.
A recent report published by Dawn noted that approximately 40% of power loom operations in Faisalabad and nearby regions closed because of cheaper Chinese textile imports, soaring power tariffs, and taxes. Industry spokespeople quoted in the filing estimated that upwards of 100,000 employees lost employment due to these shutdowns.
Faisalabad's power loom sector historically maintained nearly 800,000 looms, spanning compact workshops to larger sites running between 1,000 and 5,000 units.
Aslam Meraj, who heads the Textile, Power Loom and Garment Workers Union Faisalabad, stated that domestic makers found it difficult to rival imported yarn, gray cloth, and finished textile goods.
Sector representatives similarly voiced worries regarding Chinese polyester-based yarn shipments. They explained that certain yarn helps create gray fabric destined for foreign buyers, but once international orders drop, completed fabric returns to the domestic market of Pakistan, increasing competitive stress for local creators.
Steep electricity rates, taxes, and wage expenses compounded difficulties for power loom operators.
Zahidjee Textile Mills began as a public limited corporation on July 17, 1990. Core operations involve exporting value-added fabrics and textile made-ups alongside producing and retailing yarn.
