Page 4 - February-March 2021

05

Pakistan's exports surpassed $2.1 billion in

January 2021; Cotton production down,
Government is planting cannabis crops

Editor-in-Chief According to the report of East abolish the existing five percent
Yousaf Fareed Asian economies drive global trade customs duty on import of cotton
recovery, Pakistan's exports of yarn below 40 single count. Cotton
Editor textile products increased 7.8% in yarn prices surged 40 percent, but
Hassan Saeed dollar terms in the first seven even at that exorbitant rate it was
months of FY21 over the same unavailable on the local market.
Sub-Editor period of the previous year. Exports The situation has also compelled
Dr Sharjeel Abid of knitwear, bed wear, and towels the exporters not to take new
Noor Amjad grew by more than 16%. orders and for that reason such
Dr Shagufta Riaz Interestingly, the exports of cotton export orders meant for Pakistan
cloth declined 7.7%. Exports of shall be diverted to other regional
Advisory Board: leather manufactures showed a countries. The dollar had
Dr. Tanveer Hussain growth of 6.4%, driven by exports depreciated against the rupee by
Dr. Muhammad Tausif of leather gloves. On the other seven percent, which was also a
hand, textile machinery imports matter of concern for the exporters
Marketing Manager increased by 28.2%, while office as the situation might lead to a
Memoona Karim machinery rose by 42.4%. liquidity crunch.
Abdul Haseeb Furthermore, there is an increase in
imports of raw cotton and synthetic The availability of the cotton yarn in
Layouts fiber, indicating an increase in the the local market is already very low
Faizan Khan textile sector activity. which poses as a huge challenge
for the apparel sector. In these
Marketing Incharge The government is also moving in circumstances, a 35.86 recorded
Tanveer Ahmed the right direction. The State Bank increase in the cotton yarn export
of Pakistan (SBP) facilitates is making a layer of panic go
Address startups, fintech, and exports in the through the apparel makers. These
C-302, City Towers right direction. Furthermore, there apparel makers are already
Main Boulevard, Gulberg II is a need to upgrade machinery seeking a ban on cotton yarn
Lahore-Pakistan and equipment to ensure better export as this premium raw
competitiveness of domestic material should be utilized by
Phone: + 92 42 35 788 700 producers. Pakistan to manufacture high value
Fax: + 92 42 35 788 700 added products like garments
The value added products of which will in turn in earning foreign
Email: info@textalks.com knitwear, bedwear, towel and exchange.
Skype: textalks readymade garments have
witnessed a decline of 26.14, 7.35, In an effort to revive cotton
www.textalks.com 11.36 and 0.42 percent production, the government has
respectively in February 2021 taken a new route which is
compared to January 2021. The cannabis production. Compared to
rising volume of export of cotton cotton, cannabis can produce
yarn had deteriorated apparel crops three times the size of cotton
sector’s growth as the country per acre and has a faster
continued to face energy shortage. growing-time averaging at 90 to
100 days as compared to 150 to
The government should also 180 days for cotton.

February/March 2021