Connect with us

Business

Nishat Chunian announces partial shutdown of operations

Published

on

  • Nishat Chunian says it would suspend operations at nearly one-fourth of its spindles.
  • Says will restart spindles as soon as market conditions improve.
  • Textile manufacturer latest to announce suspension of operations.

KARACHI: One of Pakistan’s largest textile companies Nishat Chunian Limited (NCL) has announced a partial shutdown of operations from next month due to the current market conditions, reported The News on Thursday.

In a statement to the Pakistan Stock Exchange (PSX), the textile manufacturer informed that it would suspend operations at nearly one-fourth of its spindles temporarily until the market revamps.

“The company has decided to temporarily close 51,360 spindles after one month due to market conditions. However, the remaining units are operating normally. Company will restart these spindles as soon as market conditions improve,” the stock filing read.

Nishat Chunian has an installed capacity of 219,528 spindles and 2,880 rotors in its spinning division.

The textile manufacturer is the latest to announce operations suspension amid a prevailing economic downtrend in the country. Earlier this month, Kohinoor Spinning Mills Limited (KOSM) also announced the suspension of its operations giving multiple reasons.

“Due to prevailing global and economic downturn, overdue plant maintenance, high cost of production and low price and demand, it is not feasible to operate the production facility,” the KOSM said in a statement.

Pakistan has been facing multiple challenges, including low foreign exchange reserves, lack of foreign inflows, rising debt, energy shortages, and political uncertainty affecting the country’s economy, which is collectively pushing many companies to limit or shut down their operations.

Others companies that have recently announced the suspension of their operations include Indus Motor CompanyPak Suzuki Motor Company Ltd, Bolan Castings Limited and Baluchistan Wheels Ltd. Millat Tractors Limited has also been observing non-production days on Fridays since December 16.

Curbs by the government to reduce the size of its import bill have severely affected the export sector, especially textiles, which hold the lion’s share in the country’s exports. Delays in rebate and rising inflation have also contributed to a decline in Pakistan’s exports in recent months.

In November, the textile exports were down by 19% year on year. The country’s big manufacturing industries, including food, textile, petroleum oil, pharmaceutical and automobiles also reported a drop of 7.75% in October 2022, compared to the same month last year.

Last week, the All-Pakistan Textile Mills Association (APTMA) warned that the country’s textile exports could fall below $1 billion a month from 2023 onwards, seeking government intervention to save the sector from destruction.

“Across the country, the textile industry is currently using less than 50% of its capacity. If corrective action is not done quickly, a very significant number of jobs have already been lost and many more will do so,” APTMA said in a letter written to Prime Minister Shehbaz Sharif.

Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) also expressed serious concerns over a declining trend in textile exports in a statement last month. 

The textile exports had dropped by 1.34% to $5.941 billion during the first four months of July-Oct in the current fiscal year, against $6.021 billion in the same period of last year, the association said.

Business

The government is about to unleash another gasoline bomb on citizens beaten by inflation

Published

on

By

governmentThe price of petroleum products is anticipated to rise by the Federal Government starting on July 16. The price of gasoline is anticipated to rise by Rs7.67 per litre, the price of high-speed diesel by Rs3.72 per litre, and the price of kerosene by Rs2.73 per litre.

The people have informed me that a proposal to increase the petroleum levy has been created and is pending final clearance from Prime Minister Shehbaz Sharif.

After speaking with the premier, it is expected that the Ministry of Finance will declare the revised petroleum product prices tonight.

Petroleum product prices have recently surged due to rising global oil prices and Pakitsan’s adjustment of the petroleum levy in response to the International Monetary Fund’s (IMF) adamant demands, which forced the country to raise the petroleum development levy in the Finance Bill to Rs70 per litre.

Noteworthy is the fact that on July 1, the authorities also dropped a gasoline bomb.

Continue Reading

Business

Positive Trend at PSX With a 1361-Point Gain for the KSE 100-Index

Published

on

By

In the first few hours of trading, the Pakistan Stock Exchange sees a bullish trend as the KSE 100-Index rises 1361 points, bringing the stock market to over 81,300 points.

Continue Reading

Business

Significant surge in the price of gold in Pakistan

Published

on

By

On Friday, the price of gold in Pakistan continued to increase.

According to the All-Pakistan Gems and Jewellers Sarafa Association, the price of 24-karat gold per tola has risen by Rs2,200, reaching Rs249,000.

The price of 10-gram 24-karat gold increased by Rs1,886, reaching a total of Rs213,477. On Thursday, the cost of 10 grammes of 22-karat gold was Rs195,687.

The global gold market likewise had a rising trajectory. As per APGJSA, the worldwide rate was $2,404 per ounce, showing a decline of $24 during the course of the trading day.

The local market witnessed constant silver prices at Rs2,900 per tola.

Market observers attribute the increase in gold prices to other variables, such as volatility in the global market, currency exchange rates, and economic conditions. The ongoing surge in gold prices is likely to impact investment choices and consumer behaviour in the near future.

Continue Reading

Trending