In just the first two months of 2024, Pakistan’s exports of cotton yarn to China exceeded $100 million, marking a historic milestone. With favourable crop yields expected to spur additional development this year, analysts view this achievement as encouraging for Pakistan’s exports of cotton yarn to the global market.
Data from China’s General Administration of Customs indicates that in the first two months of 2024, China imported cotton yarn valued at over $100.98 million from Pakistan, according to Pakistan’s Ministry of Commerce. By comparison, this is a notable 98% rise over the same period previous year.
In particular, $57.77 million in exports were made in January and February of 2024 for uncombed single cotton yarn, which is classified as a product under the commodity code 52051200 and comprises at least 85% cotton with a yarn length between 232.56 and 714.29. After Vietnam, Pakistan is the second-biggest exporter of this kind of cotton yarn.
Additionally, data shows that in the first two months of 2024, exports of uncombed single cotton yarn, which falls under commodity code 52051100 and is composed of at least 85% cotton with a yarn length of 714.29 or more, totaled $41.95 million. Compared to the $14.54 million reported during the same period last year, this is a significant increase.
Pakistan’s yarn trade with China is important, according to Sajid Mahmood, Head of the Transfer of Technology Department at the Central Cotton Research Institute in Multan. He emphasised Pakistan’s chance to broaden its export base by providing premium alternatives to the Chinese market, like cotton, carded, and combed yarns.
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Mahmood pointed out that although having a 3.5% higher tax than China, India still poses a serious threat to Pakistan, especially in the non-Siro yarn market. This is true even with the advantages of a free trade agreement with China. Vietnam also presents a challenge because of similar duty-free benefits, but its supply chain is vulnerable because of its reliance on imported cotton.
Pakistan’s textile industry has been impacted in a number of ways by its exports of cotton yarn to China.
- Revenue and Economic Growth:
The textile industry in Pakistan has been revitalised by the increase in cotton yarn exports to China. The revenue rise, which is significant and beyond $100 million, has supported economic growth. The foreign exchange inflow adds to the overall financial stability of the nation.
- Career Opportunities:
Pakistan’s textile sector employs a sizable number of people. The need for qualified workers in spinning mills, weaving units, and clothing factories increases as exports soar. More job opportunities are consequently created for the local labour force.
- Modernization and Investment:
Exports of cotton yarn have been successful, which has stimulated investment in updating textile infrastructure. Businesses are driven to modernise their equipment, implement effective manufacturing methods, and improve the calibre of their output. Both home and foreign markets gain from this transformation.
- Strengthening the Supply Chain:
The export boom requires a strong supply network. The whole textile ecosystem is getting increasingly interwoven, from the acquisition of raw materials to the supply of completed goods. This promotes advancements in warehousing, shipping, and logistics.
- Innovation and Competitiveness:
Pakistani textile producers need to keep coming up with new ideas if they want to stay in the Chinese market. They expand their product line, investigate novel blends, and enhance yarn quality. This competitive spirit encourages innovation and advances in technology.
- Opportunities and Difficulties:
Even if the rise is encouraging, problems still exist. Pakistan is up against other countries that export textiles. The sector needs to solve problems including energy costs, meeting international standards, and environmental sustainability if it wants to maintain momentum.
- Relations of Trade and Diplomacy:
Trade links between Pakistan and China are strengthened by the success of cotton yarn exports. The function of diplomacy in facilitating trade agreements, tariff reductions, and market access is vital. Both nations work together to establish a business-friendly atmosphere.
Pakistan’s thriving textile industry benefits economically and creates jobs because to its strong trade relationship with China. To maintain this good trajectory, strategic planning and flexibility will be essential.