INP-WealthPk

Policy rate cut, solar investment power Gul Ahmed’s growth

June 23, 2025

Shams ul Nisa

Gul Ahmed Textile Mills Limited is leveraging Pakistan’s easing inflation and recent policy rate cut to accelerate growth and boost profitability, reports WealthPk.Furthermore, the company’s strong push into solar energy has delivered strong financial results that underscore its ability to withstand global challenges.

Gul Ahmed is advancing its renewable energy ambitions with major solar expansions and plans to diversify into biomass and other green sources. Beyond lowering energy costs, these initiatives aim to secure long-term stability, cut emissions, and strengthen the company’s competitive edge as a sustainable leader in Pakistan’s textile sector.

Pakistan’s economy turned a corner in 3QFY25 as inflation hit its lowest level in a decade, prompting the State Bank to cut policy rates. As a result, the easing monetary policy offers much-needed relief from earlier high borrowing costs, unlocking fresh capital for expansion, innovation, and job creation as the company supports the country’s recovery.

Despite global challenges, including new tariffs, volatile commodity prices, and geopolitical uncertainty, Gul Ahmed delivered strong sales growth, supported by its market diversification strategy. While rising costs squeezed margins, the company’s steady growth shows its ability to navigate challenging conditions.

Gul Ahmed’s growth reflects the strength of Pakistan’s broader textile sector, which continues to drive export earnings and employment. Its expanding export sales support foreign exchange inflows, helping stabilize the currency and reduce the trade deficit.

Moreover, the company’s ongoing investments in expansion and modernization create jobs, boost local industries, and develop workforce skills. Therefore, Gul Ahmed is focused on sustainable, innovation-driven growth, with plans to expand its use of renewable energy, adopt advanced technologies such as automation and AI, and strengthen market diversification.

Despite a positive outlook, Gul Ahmed remains cautious amid slowing global growth, geopolitical tensions, and new trade barriers. Domestically, the company is closely watching energy costs, currency movements, and policy changes to stay agile. Hence, the company is positioned for renewed growth and profitability with the combined benefits of lower interest rates and expanded solar investments.

Gul Ahmed continues to overcome challenges and reinforce its position in Pakistan’s textile industry by prioritizing innovation, sustainability, and prudent financial practices. With the economy on the rebound, its forward-looking strategy and dedication to renewable energy promise long-term benefits for stakeholders, supporting overall economic stability in the country.

Credit: INP-WealthPk