KARACHI:
A major downward trend in cotton prices in Pakistan and globally has led to a continued decline in exports of cotton products, raising fears that like last year, most cotton ginners may again face huge financial losses this season.
The entire cotton chain is facing one of the worst economic crises in its history, while many textile factories and gins have also begun to close.
Cotton Ginners Forum president Ehsan-ul-Haq told The Express PAkGazette that over the past week, the price of cotton in the local market fell by Rs 500 per maund, reducing it to Rs 15,500 per maund.
He said that because Pakistan has the highest energy tariffs and interest rates in the region compared to rival countries, declining textile exports have pushed the local cotton industry into an extraordinary crisis.
Haq said the Government of Pakistan should, instead of spending more than Rs 600 billion a year on the Benazir Income Support Program (BISP), focus on protecting local industries and developing a strategy to reduce production costs.
The BISP is an unconditional federal cash transfer program for poverty reduction. Launched in July 2008, it is the largest social safety net program in the country.
Haq further stated that an important meeting of Pakistan Cotton Board headed by Deputy Prime Minister Ishaq Dar will be held in Islamabad today (Monday) where crucial decisions regarding revival of cotton sector under Pakistan Cotton Plan 2025-26 are expected.
He also suggested that instead of simply focusing on reviving cotton cultivation, there is a pressing need to formulate a plan to boost cotton consumption in Pakistan so that the closed textile mills and gins can be reopened and restored to operation.
