Page 5 - TEXtalks January/February 2022

05

Pakistan envisages $200b exports;

Global demand for cotton would reach

all-time high; Pakistan Cotton Authority

Pakistan's government has fixed an This year, global demand for cotton
export target of worth $200 billion would reach an all-time high,
by the end of the fiscal year 2025. thanks to the economic resurgence
Key features of the 3rd Textile and from the pandemic that has driven
Apparel Policy, recently approved cotton prices to their highest level
by the Cabinet, including the in a decade. THIS SPRING, the US
persuasion of value addition in cotton growers plan a 7% increase
textile, manufacturing of globally in cotton plantings. The harvest
competitive products according to would be 17.3 million bales
the global trading market, and weighing 480 pounds, with typical
subsidizing more facilities in this weather and yields.
sector compete with its regional
competitors. The government has US exports will increase to 15.8
rationalized the tariff, and in this million bales in the 2022 marketing
regard, and reduced the duties in year. When combined with US mill
many areas of textile from zero to use, total offtake exceeds
50 %. Similarly, for the textiles expected production, and ending
machinery being imported, the stocks are projected to fall to 3.1
duties have been reduced so that million bales. US stocks represent
modern machinery can be brought one of the lowest levels in the last
into the textile industry and its 20 years.
products can be introduced in the
global competitive market. World ending stocks are projected
to decline by 3.4 million bales in
Pakistan's textile sector can deliver the 2022 marketing year to 81.6
the set target of $200 billion as in million bales, resulting in a
textile value-added, Pakistan is stocks-to-use ratio of 64.8%.
second in home textile, second in
Towel, third in hosiery, and 17th in The government has already
Apparel. Pakistan is ranked 5th subsidized the fertilizer sector with
globally in cotton and yarn 15.5 billion rupees, and PM said to
production and 2nd in fabrics. The increase fertilizer production
textile sector employs about 40% of capacity by installing new units in
the industrial workforce in South the country. Farmers, textile
Asian countries, consumes almost spinners, and other stakeholders
40% of banking credit for applaud the initiative as Pakistan,
manufacturing, and accounts for an agricultural and textile country,
8.5% of the gross domestic needs special attention and such
product. The share of textile exports initiatives to improve cotton
in the world stood at $1 trillion while production. It is hoped that with the
IT exports were hovering around $5 proper steps taken, the country will
trillion, so Pakistan's real potential decrease the gap in cotton
was lying in IT, pharmaceutical, and production and consumption within
other products. the country.

January/February 2022