A notification received from Nishat Chunain textile industry notified to Pakistan stock exchange,
“51,360 spindles will be temporarily shut down (23.4% of the total) after one month. As soon as the market conditions improve,” the company will restart the spindles.”
Nishat textile has 219,528 spindles and 2,880 rotors in its spinning division. It is also 5th giant textile industry in terms of earnings.
Moreover, its interim financial information report for September’s quarter said that:
“Domestically, recent fluctuations in the exchange rate of the US dollar and the recent surge in political instability are turning out to be very challenging for the industry.”
It also covered words about the international decrease in demand “Internationally, the Russia-Ukraine war has taken a big toll on the global economy, which still has not fully recovered from the pandemic.”
Nishat has faced a net loss of Rs130.83 million in the Jul-Sept 2022 quarter compared to the previous year’s Rs2.22 billion profit.
The textile industry earns about 60% of the export profit of total export. Due to these things, Pakistan is losing its foreign reserves. Pakistan Bureau of Statistics PBS stated that there was about an 18.15% earning decline in the first 5 months compared to the same days of the previous year.