Business

Nishat Chunian announces partial shutdown of operations

Published

2 years ago

Farwa

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 Company, Pak 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 amount of trade between Saudi Arabia and Pakistan hits $700 million.

Published

10 hours ago

Farwa

Through the Special Investment Facilitation Council (SIFC), Pakistan’s trade connections with Saudi Arabia have grown significantly, with bilateral trade volume rising from $546 million to $700 million and exports to the Kingdom growing by 22%.

As bilateral economic cooperation continues to grow, Saudi investors have shown a strong interest in Pakistan’s construction, energy, agricultural, and information technology sectors. The objective for exporting IT services between the two countries has been raised from $50 million to $100 million.

Saudi Arabia has set up a help desk dedicated to making it easier for Pakistani IT companies to register in the Kingdom in order to expedite commercial procedures. The goal of this program is to speed up economic collaborations between the two countries and lower administrative barriers.

The well-known Saudi restaurant chain AlBaik has revealed plans to open locations in Pakistan, which is a big step for the food service industry and should lead to the creation of new job possibilities in the area.

Officials have noted that stronger business links between the two countries lead to greater economic stability, and the SIFC has played a crucial role in promoting these trade advancements. For bilateral trade and investment projects, the Council remains a crucial facilitator.

According to a trade official with knowledge of the developments, “the establishment of dedicated support mechanisms, such as the help desk for IT companies, demonstrates a commitment to long-term economic partnership,” The goal of these programs is to improve the conditions for commercial collaboration between the two nations.

The increasing amount of trade and the diversity of investment sectors show that Saudi Arabia and Pakistan’s economic ties are changing as both countries seek to deepen their business alliances in a number of industries.

Business

After more than 50 years, Bangladesh and Pakistan resume direct trade.

Published

10 hours ago

Farwa

After more than 50 years, the two governments will resume direct bilateral trade, with Bangladesh’s food ministry announcing Sunday that it will receive a supply of 25,000 tonnes of rice from Pakistan next month.

After former Prime Minister Sheikh Hasina was overthrown last August, relations between Bangladesh and Pakistan have begun to improve after decades of tense relations.

Since then, there have been increased bilateral interactions between Bangladesh and Pakistan. Nobel laureate Muhammad Yunus, the interim government’s senior adviser, has met twice with Pakistani Prime Minister Shehbaz Sharif.

According to the food ministry, Dhaka completed an agreement earlier this month to import grains from Pakistan.

“On March 3, the first shipment of 25,000 tonnes will reach Bangladesh,” Zia Uddin Ahmed, a ministry assistant secretary, told Arab News.

“This is the first time that Bangladesh has started importing rice from Pakistan at the government-to-government level since 1971.”

Following direct maritime contact between the two South Asian countries in November—a Pakistani cargo ship stopped in Bangladesh for the first time since 1971 with imports and exports arranged by private companies—their trade relations grew.

Resuming trade with Pakistan is a significant step for Bangladesh, according to Amena Mohsin, a lecturer at North South University and a specialist in international relations.

“We want to see progress in our bilateral relationship with Pakistan. Most significantly, we are currently going through a low point dispute with India, even though we constantly diversify our partnerships.

This most recent move to purchase rice from Pakistan is really significant in this context,” she told Arab News.

Business

The total amount of Pakistan’s liquid foreign reserves is $15.95 billion.

Published

3 days ago

Farwa

As of February 14, Pakistan’s total liquid foreign reserves were $15,947.9 million, with the State Bank of Pakistan’s (SBP) holdings being $11,201.5 million.

Official figures for the week ending February 14, 2025, show that the central bank’s liquid foreign exchange reserves rose by $35 million to $11,201.5 million.

Commercial banks maintained net foreign reserves of $4,746.4 million during the period under review, according to the breakdown of foreign reserves.

The nation’s total liquid foreign reserves as of the week ending February 07, 2025, were $15,862.6 million.

Of these, the central bank held $11,166.6 million in foreign reserves, while commercial banks kept $4,696 million in net reserves.