Key Takeaways
- Zahidjee Textile Mills has shut down a weaving unit with 262 looms.
- The move is part of broader operational adjustments in Pakistan’s textile sector.
- Textile manufacturers face increased competition and higher operating costs.
Zahidjee Textile Mills Limited has announced the closure of a weaving unit with 262 looms, according to a disclosure to the Pakistan Stock Exchange (PSX).
The company cited operational adjustments as the reason for the closure, which was detailed in a material information notice dated October 16, 2026.
While the closure is part of ongoing changes in the textile manufacturing sector, specific details such as the number of employees affected or the financial impact were not disclosed.
The decision comes as the textile industry in Pakistan grapples with mounting pressures, including higher operating expenses and competition from imported products.
A recent report by Dawn highlighted that around 40% of power loom units in Faisalabad and surrounding areas have shut down, with over 100,000 workers losing their jobs.
Faisalabad’s power loom industry historically included nearly 800,000 looms, ranging from small workshops to larger facilities operating between 1,000 and 5,000 machines.
Industry representatives, such as Aslam Meraj, president of the Textile, Power Loom and Garment Workers Union Faisalabad, have expressed concerns about competition from cheaper Chinese textile imports and rising electricity costs.
Meraj noted that local producers struggle to compete with imported yarn, gray cloth, and finished textile products, particularly with the influx of Chinese polyester-based yarn.
High electricity tariffs, taxes, and labor costs have further exacerbated the challenges faced by power loom operators, contributing to the ongoing difficulties in the sector.
