Zahidjee Textile Mills shuts 262-loom weaving unit amid mounting pressure on Pakistan's textile industry

Zahidjee Textile Mills has shut a weaving unit with 262 looms, describing the move as part of its operational adjustments, according to a notice filed with the Pakistan Stock Exchange on Monday. The company tied the decision to its business needs and the operating environment it currently faces. It did not say where the unit was located, how many employees were affected or what the closure means for its finances.

Dawn said roughly 40% of the power looms operating in Faisalabad and nearby districts have closed, pointing to cheaper Chinese imports, higher electricity costs and taxes. Industry figures claimed more than 100,000 workers have lost jobs, while the local union president said domestic manufacturers are finding it hard to keep up with imported yarn and grey cloth. Operators also flagged high power tariffs, heavy taxation and labour expenses as drivers of rising production costs.

The company was registered on July 17, 1990, and mainly exports value-added fabrics and textile made-ups, while also making and selling yarn. The filing did not connect the unit closure to the wider sector difficulties described in the Dawn report.