In yet another concerning development for Pakistan’s vital textile sector, Janana De Malucho Textile Mills Limited (JDMT) has announced to shut operations “for the time being” citing economic woes.

The listed company, engaged in the manufacture and sale of yarn, shared the development in a notice to the Pakistan Stock Exchange (PSX) on Thursday.

“Due to the prevailing economic conditions in the country, increase in power cost, and non-availability of quality cotton at an affordable price, decrease in sales and accumulation of finished goods stock due to slow down of yarn markets, the company is unable to continue with the production activities.

“Therefore, the company has decided to temporarily shut down/ close production activities for the time being,” read the notice.

The company said that its management will continue to monitor the situation for future course of action, “and is committed to resume the production activities as soon as the situation improves”.

JDMT was established in 1960 as a public limited company. It commenced commercial production three years later in 1963. The company manufactures and sells yarn at its textile unit in Kohat, Peshawar.

Pakistan’s textile sector remains plagued with problems including a massive decline in cotton arrivals, a crucial ingredient for the industry.

Earlier on Tuesday, Ghazi Fabrics International Limited, a prominent textile exporter, announced to curtail production activities citing similar issues including difficult economic conditions and the unavailability of quality cotton.

Last week, the All Pakistan Textile Mills Association (APTMA) expressed grave concern over the persistently high interest rates, proposing a cut of 400 basis points from the current 17.5% to revitalize the economy and create fiscal space for public expenditures, as well as to ensure the survival and growth of critical industries.

The Monetary Policy Committee (MPC) is scheduled to meet on November 4, 2024, to deliberate on the discount rate.