All Pakistan Textile Mills Association (APTMA) has warned that any distortion in the policy of free-market mechanism will be a disaster for the textile exports of Pakistan.
As Pakistan faces its biggest crop failure this year, cotton manufacturers have claimed that yarn prices in Pakistan are more than the international prices which have caused financial stress to value-added textiles and increased their cost of manufacturing.
However, APTMA has stated that international prices of cotton are at 90 cents delivered to Pakistan from Brazil, the USA, and West Africa, and are consistent with the international market.
The press release also highlighted that the local requirement of 14 million bales of cotton is not fully met as according to APTMA, only 7 million is produced and half of it is exported. Apart from this, the spinning industry of Pakistan, which is the 3rd largest after China and India, is also exporting finished products at $5 billion.
As per APTMA, this has caused an artificial shortage and has disrupted the market. In another recent press release by APTMA on Tuesday, it was stated that monthly yarn production in Pakistan is around 200,000 tons which is in fact, a surplus.
The Association has further clarified that these false claims of shortages and high international prices are nothing but a bid by the manufacturing industry to get out of paying international prices, even though the prices have faced a dip due to the pandemic.
