All Pakistan Textile Mills Association (APTMA) leader Gohar Ejaz in a letter to the US ambassador of Pakistan, Donald Bloom, for a loan of 2 billion dollars in Pakistan for cotton import. He also requested the US government also to facilitate the Pakistani textile industry by providing concessional loans. He said a mechanism should be developed by the US authorities that facilitate the textile industry to avail of the US credit facility.
Pakistani importers including those in the textile sector are facing difficulty in opening letter of credit for importing raw materials which are creating problems for the industries. He also urged the US government to announce concessional loans for Pakistan’s textile industry. He suggested that the US authorities should develop a plan to facilitate access to credit for importing cotton.
It is pertinent to note that Pakistan is facing an acute shortage of cotton. It harvested less than 5 million bales in 202-23 the lowest in the last three decades. The local textile sector consumes around 14 million cotton bales annually. The industry would require to import 10 million bales to operate to full capacity. The industry has already opened a letter of credit for 5 million bales. The rest must be imported but we lack the foreign exchange needed for this purpose. The production of cotton in Pakistan has reached the lowest level in history.
The letter also referred to the devastation caused by the recent floods in Pakistan. The economy suffered a colossal loss suffered an economic loss. The US loan for cotton import will save millions of jobs and improve Pakistan’s balance of payment.
