At the time when Pakistan is facing acute shortage of foreign exchange reserves, the economists have come ahead with a big danger of shortage of cotton in country.
As per data of Pakistan Cotton Ginners Association (PCGA), about 4.76 million bales of cotton have been produced by the last day January this year as compared to the cotton production of 7.42 million bales by January 31, last year. The shortage comes to 35.8 percent or 2.66 million bales.
To overcome the shortage, Pakistan will have to import the cotton. All Pakistan Textile Mills Association (APTMA) has approached the Prime Minister, Shahbaz Sharif?to address the issue so that the already aggravating condition of industry may not further worsen.
According to the report of PCGA, Punjab produced more than 2.8 million bales in 2022 as compared to more than 3.9 million bales last year. Sind produced 1.87 bales in 2022 as compared to more than 3.51 million bales last year.
Textile spinner have procured 4.175 million bales as compared to the procurement of 7.23 million bales, last year. Naseem Usman who is cotton broker in Karachi says that total production of cotton will be less than five million bales. The ginners have the stock of around 0.583 million bales against the last years stock of 0.171 million bales. 157 ginning factories are still operating to produce more lint. He commented that to fulfill the needs of textile mills, about seven million bales will have to be imported this year. ?
He told that the agreement for import of 5.5 million bales has been done. Due to the rising trend of prices in the country, Rs.22,000 per bale was being quoted in Karachi on February 3 against the rate of Rs.19,700 on the same date, last year.
In a letter to the Prime Minister a few months ago, the APTMA had requested the premier to take urgent and appropriate action to resolve the issue of the shortage of cotton in the country. As expansive imported cotton would increase the cost of production which will ultimately result in the closure of big number of textile mills.
The financial experts of Pakistan are of the view that if the same economic condition continue, millions of worker from different sector may face the unemployment.