Haseeb Waqas Sugar Mills Limited (PSX: HWQS) is exploring a potential sale after prolonged operational shutdown, governance concerns and financial restructuring, according to an international news publication.
In June 2025, the company’s sponsors announced an intention to buy back shares, but the plan was withdrawn the following month. The Pakistan Stock Exchange (PSX) had earlier issued a notice directing the company to initiate a compulsory buyback, but the process was not carried through. The company remains non-compliant with PSX requirements, including the payment of mandatory fees.
The company operates a 10,000-ton-per-day sugar plant in Alipur, Punjab. Its market capitalization currently stands at around Rs. 700–750 million. The mill has remained non-operational since September 30, 2018.
According to the company’s latest annual report issued on January 9, 2026, Haseeb Waqas Sugar Mills has secured loan restructuring from United Bank Limited. The restructuring provides significant relief, with indications that accrued interest may have been waived.
The company has recorded accrued unpaid interest exceeding Rs. 1.15 billion, equivalent to about Rs. 36 per share, while the stock is trading at around Rs. 26 per share. Management is also seeking restructuring/settlement with Sindh Bank, National Bank of Pakistan, PAIR Investment, and First National Bank Modaraba.
The annual report shows that plant and machinery with a carrying value of Rs. 4.895 billion, representing about 84 percent of total assets, has remained idle for over six years. Although the assets were revalued in 2023, the company did not conduct an annual impairment test or determine value-in-use as required under IAS 36. As a result, auditors were unable to assess whether further write-downs were required.
The report also highlights unresolved issues, including unpaid sales tax liabilities, a lack of actuarial valuation for gratuity obligations, unverified trade payables, unsupported inventory records, and the pending settlement of unclaimed dividends.
Industry benchmarks suggest that sugar mills in Pakistan typically transact at around Rs. 1 billion per 1,000 tons of daily capacity, implying that the company’s potential value is roughly Rs. 10 billion for a 10,000-tons-per-day facility. HWQS owns about 72 acres of land in Nankana Sahib.
The reported move to seek buyers comes despite doubts over the company’s governance, compliance status and the future of its stalled operations.
