Pakistan Prime Minister Imran Khan has approved cross-border import of cotton yarn as the shortage of industrial input is feared to stymie recovery in textile exports.
As per reports, Pakistan’s cotton production declined to 5.5 million bales from as much as 15 million bales recoded annually in previous years, causing unstoppable rise in its prices.Its textile and clothing exports increased by over 8 percent to $8.8 billion in the seven months of the current fiscal year.However, traders warned that the growth pace can slow down amid the shortage of raw materials.
Pakistan Yarn Merchants Association expressed deep concern over the unavailability of cotton yarn and its price reaching to an all-time high. It asked the government to immediately allow duty-free import of yarn and cotton from India to save the textile industry from collapse
If export orders are not fulfilled on time, the business will adversely be affected, according to the association.
The association’s office bearers said a large number of export orders from China, Bangladesh and India were transferred to Pakistani exporters, which led to an increase in production activities. However, these days the cost has risen sharply due to non-availability of raw materials as per the demand of the textile industry and the high price of yarn in the local markets.