Pakistan’s textile sector is on track towards swift recovery following the devastation caused by COVID-19 as the country has witnessed a sharp surge in its cotton imports. Textile exports from Pakistan grew 16 per cent and 9 per cent in September and October 2020 on a monthly basis compared to a massive decline in August 2020 owing to torrential rains, explains Muhammad Saad Ziker, Analyst, Insight Securities.

In his research report, the analyst pointed out the much-needed growth was being achieved through import of cotton and man-made yarn. The government is also pushing hard for exports growth as it aims to lift them to $50 billion by 2030, according to the textile policy 2020-25. The 5 per cent regulatory duty on the import of cotton has been eliminated; subsidized energy to industries is ongoing and loans under the Long-Term Financing Facility (LTFF) have been facilitated. The value added segment is expected to grow on the back of huge export orders, which will be delivered by May 2021.

Mahmood Nawaz Shah, Senior Vice President, Sindh Abadgar Board emphasized that Pakistan’s weather and environment suited cotton production the best. Apart from growers, ginning and allied businesses would also bear the brunt of imports as their cost would soar, said Shah.