Textile Troubles Deepen: Zahidjee Shuts Down Weaving Operations

Zahidjee Textile Mills Limited has shut down a weaving unit of 262 looms, as disclosed to the Pakistan Stock Exchange on October 16, 2026. The company's material information notice revealed the closure was part of operational adjustments in response to business demands and current conditions. No specifics were given about the affected employees, financial impact, or the facility's future use.

The textile industry in Pakistan is facing pressures from higher costs and competition from imported products. Dawn reported that around 40% of power loom units in Faisalabad and nearby areas have closed due to competition from cheaper Chinese textile imports, higher electricity costs, and taxes. This has led to the loss of over 100,000 jobs in the industry.

Faisalabad's power loom industry, once comprising nearly 800,000 looms, now faces challenges from imported yarn, gray cloth, and finished textile products. The Textile, Power Loom and Garment Workers Union Faisalabad's president, Aslam Meraj, highlighted local producers' struggle to compete with these imports. High electricity tariffs, taxes, and labor costs have also added to the difficulties for power loom operators.

Zahidjee Textile Mills, a public limited company since July 17, 1990, focuses on exporting value-added fabrics, textile made-ups, and manufacturing yarn.