Pakistan's yarn merchants want a better deal. They say unless economic conditions improve, overall business stability, exports and industrial progress will remain elusive. China’s reversal of cotton policy has hit Pakistan’s yarn production and export. Cotton yarn production also started falling in the country, reflecting the slowing down of demand from China.

Import of cheaper yarn from India at zero tariff lowered the demand for domestic cotton yarn and kept market prices down. This again hit production. More than 75 per cent of the textile industry is engaged in yarn making. Much of Pakistan’s cotton yarn goes to domestic production of socks, towels and home textile products. Other yarn buyers are velvet, carpet, tent, canvas, blanket, sewing thread and embroidery thread manufacturing units.

The government has no clear-cut policy on yarn exports. Exporting cotton and cotton yarn at less than international prices creates a shortage of raw material for the local industry. A simple solution would be to address the grievances of cotton growers in the country as that will ensure a bumper crop.

Improved quality of raw cotton will not only reduce the cost of production and waste production but will enable spinners to produce cotton yarn of higher counts to fetch more foreign exchange.