It may be recalled that in the past cotton import was allowed from India, but last minute change in policy causes serious problems for the millers and also plunged export of textiles and clothing from Pakistan.
According to the report, cotton arrival in Pakistan declined to 4.875 million bales as of March 01, 2023 as compared to 7.442 million bales during the same period last year, a fall of 2.567 million bales or 34.5%.
The decline in cotton arrival is attributed to the flash floods in Pakistan, which devastated large swathes of agricultural land in the country, especially in Sindh and Baluchistan.
Cotton is an essential raw material for the country’s textile sector and the situation is alarming for Pakistan’s cash-strapped economy, which is already facing depleting foreign exchange reserves.
As per the PCGA data, cotton arrival reported a steep fall in Sindh. Cotton arrival in the province was reported at 1.879 million bales.
Similarly, cotton arrival in Punjab was reported at 2.996 million bales as compared to 3.929 million bales a year ago.
Industrialists have expressed concern over the ongoing slump in the textile sector. All Pakistan Textile Mills Association (APTMA) has urged the federal government for a level playing field by implementing a uniform gas price of US$7 per MMBtu for the export industry across the country.
APTMA also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) will hurt the textile industry, particularly in Punjab.
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