Zahidjee Textile Mills Limited has closed a weaving unit comprising 262 looms, according to a disclosure submitted to the Pakistan Stock Exchange (PSX), marking another operational change in Pakistan’s textile manufacturing sector.
In a material information notice dated October 16, 2026, the company informed shareholders and the public that the closure was part of operational adjustments made in response to its business requirements and prevailing operating conditions.
The notice, issued under the relevant provisions of the Securities Act, 2015, and PSX rules, did not disclose the location of the unit, the number of employees affected or the financial impact of the decision.
Zahidjee Textile Mills did not provide further details about the future use of the facility or whether the closure would affect its other operations.
Textile industry faces mounting pressure
The closure comes as textile manufacturers in Pakistan contend with higher operating expenses and competition from imported products.
A recent report by Dawn said around 40% of power loom units in Faisalabad and surrounding areas had shut down amid competition from cheaper Chinese textile imports, rising electricity costs and taxation. Industry representatives cited in the report estimated that more than 100,000 workers had lost their jobs as a result of these closures.
Faisalabad’s power loom industry has historically included nearly 800,000 looms, ranging from small workshops to larger facilities operating between 1,000 and 5,000 machines.
Aslam Meraj, president of the Textile, Power Loom and Garment Workers Union Faisalabad, said local producers were struggling to compete with imported yarn, gray cloth and finished textile products.
Industry representatives have also raised concerns about Chinese polyester-based yarn imports. They said some of the yarn is used to produce gray fabric for export markets, but when overseas demand weakens, finished fabric can be redirected to Pakistan’s domestic market, adding to competitive pressure on local manufacturers.
High electricity tariffs, taxes and labor costs have further increased the challenges facing power loom operators.
Zahidjee Textile Mills was incorporated as a public limited company on July 17, 1990. Its principal business includes exporting value-added fabrics and textile made-ups, as well as manufacturing and selling yarn.
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