Textile Troubles Deepen: Zahidjee Shuts Down Weaving Operations

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.

Key points

• Faisalabad's power loom industry has historically included almost 800, 000 looms, ranging from small workshops to larger facilities operating between 1, 000 and 5, 000 machines.
• Zahidjee Textile Mills was incorporated as a public limited firm on July 17, 1990.
• Industry representatives cited in the report estimated that more than 100, 000 workers had lost their jobs since of these closures.
• Zahidjee Textile Mills did not provide further details regarding the future apply of the facility or whether the closure would affect its other operations.
• The closure comes as textile manufacturers in Pakistan contend with higher operating expenses and competition from imported products.

In a material information notice dated October 16, 2026, the firm informed shareholders and the public that the closure was part of operational adjustments produced in response to its business requirements and prevailing operating conditions.

In practice, 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. Textile Factories Seek Cheap Electricity from Punjab Govt.

Zahidjee Textile Mills did not provide further details regarding the future apply of the facility or whether the closure would affect its other operations. Textile industry faces mounting pressure.

In practice, the closure comes as textile manufacturers in Pakistan contend with higher operating expenses and competition from imported products.

For context, a recent report by Dawn remarked around 40% of power loom units in Faisalabad and surrounding areas had shut down against the backdrop of 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 since of these closures.

Faisalabad's power loom industry has historically included almost 800, 000 looms, ranging from small workshops to larger facilities operating between 1, 000 and 5, 000 machines. Govt to Fix Textile Exports.

Aslam Meraj, president of the Textile, Power Loom and Garment Workers Union Faisalabad, remarked local producers were struggling to compete with imported yarn, gray cloth and finished textile products.

Industry representatives have additionally triggered concern concerning Chinese polyester-based yarn imports. They remarked some of the yarn is employed 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 rose the challenges facing power loom operators.

Zahidjee Textile Mills was incorporated as a public limited firm on July 17, 1990. As well as manufacturing and selling yarn, its principal business includes exporting value-added fabrics and textile made-ups. Stay Connected with ProPakistani.

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For now, textile Troubles Deepen: Zahidjee Shuts Down Weaving Operations remains the part of the story worth watching, and further updates are likely as more details are confirmed.