Page 11 - TEXtalks March/April 2022

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The tension between Ukraine
Pakistan and US to increase bilateral

trade with emphasis on textiles and Russia influences the

Pakistan and the United States have pledged to different items worth 5,283.5 million USD to the USA. cotton Market
strengthen trade ties and business-to-business The textiles industry, which supplies everything from
contacts to enhance the bilateral trade volume. Both denim jeans to towels for buyers in the US and
nations decided to boost cooperation in the Europe, is one of the country's few economic bright
agriculture, textile, and healthcare sectors and spots.
promote digital trade and e-commerce. Protection of
intellectual property, promotion of labor rights, and The exports of Pakistani products to various
women's economic empowerment also came under countries showed that the USA remained the top
discussion during an inter-sessional meeting under buyer of Pakistani goods, where $570 million worth of
the Pakistan-United States Trade and Investment goods were exported in January of this financial year,
Framework Agreement (TIFA). compared to $456 million, posting a growth of 25%.
Thus, further enhancing bilateral trade with the US
US is one of the preferred destinations for the could be exceptionally helpful for the textile,
Pakistani textile sector. In 2021, Pakistan exported agriculture, and other sectors of Pakistan.

Cotton is the backbone of Pakistan's economy. because according to the Cotton Association of India,
Cotton and allied cotton products account for about there will be a decline of 5 lac bales in cotton
ITMA 2023 space application over 10 percent of the country's GDP. The Pakistan as the government imposed a 17% sales tax
production. However, cotton prices skyrocketed in
65 percent of the country's export earnings and add
on cotton-related items. One wonders that in these
extraordinary fluctuation was seen in the international
response exceeded expectations commodities market due to the war between Russia circumstances how the cotton production will increase.
and Ukraine. Under the influence of the international
market, the fluctuation was also seen in the local
The good news for Pakistan is that Punjab sees an
cotton market. During the last week, a bearish trend
was witnessed in Pakistan's local cotton market. Mills increase in cotton acreage after a decade. Cotton
crop may see its area increasing for the first time in
were hesitant to buy cotton at high rates due to the the last decade this year in Punjab as its sowing
ITMA 2023, the 19th showcase of the world’s largest research and develop more innovative solutions. disparity between cotton and cotton yarn. As a result, starts and competing crops, especially maize, lose
textile and garment technology exhibition, is on track Hence, they are all set to use ITMA 2023 to unveil trading volume was seen decreasing. their economic sheen, claim farmers who abandoned
to occupy 12 halls of the Fiera Milano Rho exhibition their technologies. the crop a few years back. Return of cotton is in the
complex. The exhibition has drawn an enthusiastic During the last week, trading volume was meager, air, in all areas of central Punjab, and the farmers are
response from leading textile and garment CEMATEX applicants have booked over 65% of the and if there was some trading, it was on borrowing. It counting the benefits as well, some of them very valid
technology manufacturers, according to CEMATEX space. The three countries with the highest number looks that there will be no businesses in the coming ones. Nevertheless, much of this optimism translates
(European Committee of Textile Machinery of applicants are Italy, Germany and Spain, and the days because of the war between Russia and into acres on the ground is more guesswork.
Manufacturers), the show owner of ITMA. More than top countries are China, Turkey, and India from the Ukraine. The effects of this war are seen on the whole
93% of the exhibition space has been sold by the rest of the world. The top sectors based on applicant world, but the global commodity markets are badly The organic cotton movement in India appears to be
application deadline of 15 March 2022. A total of numbers are finishing, spinning, weaving, printing, affected, including cotton. booming, but much of this growth is fake, say those
1,364 applicants from 42 countries have booked over knitting, winding, and nonwovens. ITMA 2023 will be who source, process, and grow the cotton. The
111,000 square meters of net exhibition space. held at Fiera Milano Rho, Milan, from 8 to 14 June The rates of cotton in Brazil, Central Asia, Africa, and largest single producer of the world’s organic cotton
2023. The exhibit profile has been expanded to Australia remained stable, but there was a panic in supply is India, which accounts for half of the organic
Many companies have taken advantage of the quiet include a dedicated chapter on textile reinforcement the market due to the Russia- Ukraine war. The cotton sold globally and where the organic cotton
business environment during the last two years to structures for composites. cotton market in India witnessed a bearish trend movement appears to be booming.

March/April 2022 March/April 2022