Since fiscal ’09 growth in production of both cotton cloth and cotton yarn in Pakistan has been negligible. Over the last three years, cotton yarn production has moved with an annual average increase of one per cent. Cotton cloth production has followed a similarly pattern with an average growth rate of 0.23 per cent.
The production of cotton cloth in fiscal ’18 is estimated to be 3.42 million tons while cotton yarn output might stand at 1.05 billion square meters. This would translate into zero increase in production of what are undeniably key inputs in the textile value chain.
Textile players in the spinning and weaving segments expect little to no growth in full year production numbers of cotton cloth and cotton yarn. The rising cost of production has been a bane for spinning and weaving mills. This has been particularly true for smaller players in these sectors. Almost 35 per cent of the total conversion cost in the textile value chain is energy but the electricity and gas tariffs being charged from the domestic industry are the highest in the region. More than 100 textile companies have shut down completely because of the challenging business environment in the country.