In a completely shocking turn of events, Nishat Chunian Limited has announced it will be partially suspending its operations for at least January 2023. Pakistan is going through an economic crisis at the moment and it looks like things will be tough in the new year as well.
As a textile giant in Pakistan, the news of Nishat halting a few thousand of its spindles is a big blow to Pakistani exports and the jobs in the country as well. they released this information via a Pakistan Stock Exchange Filing in which they stated:
“The company has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division. Company has decided to temporarily close 51,360 spindles after one month due to market conditions.”
The remaining spindles and units will work as usual and the units shut down and will restart when the market condition becomes better. It should be noted that Nishat Chunian Limited is Pakistan’s largest textile company so its shutting down is very alarming.
Pakistani Industry Facing Heavy Loses
Nishat Chunian Limited is not the only company that had to temporarily shut its operations for the time being. It is yet another name in a series of bad news for the Pakistani industry. Previously, Indus Motor Company, Pak Suzuki Motor Company, Bolan Castings Limited, Baluchistan Wheels, and Millat Tractors Limited had to cut back on their production days since 16th December.
Pakistan’s large-scale manufacturing declined by 7.75% in October. The overall automobile sales have decreased by 39 pc year on year. All Pakistan Textile Mills Association has already warned that Pakistan’s textile export may fall below $1 Billion in 2023 and more as the industry is operating at less than 50% capacity.
High prices of electricity and the current economic condition of the country are behind the current predicament of the biggest textile manufacturer in the country. However, it looks like Nishat Chunian Limited is hope to restarting full capacity very soon and with its full grandeur.
It is a guessing game at the moment and now it is a praying game.