KARACHI: Stability in the rats of quality cotton witnessed. Business volume is limited. Due to the huge increase in energy, gas prices, the textile chain is suffering from severe crisis. More mills and power looms started closing down. The financial crisis in the market is severe. Instead of solving the current crisis, the government is giving future plans.
Federal interim minister of Commerce Dr Gohar Ijaz has showed his resolve to increase the exports to US 100 billion dollars and as first step they will try to increase the export of the textile sector to 50 billion dollars. Strikes will not solve the problems.
The officials of the institutions should show wisdom by meeting the concerned authorities and ministers and solving the problems faced by them. It is not possible to increase cotton production without solving the related integrated problems.
In the local cotton market, the price of cotton remained stable due to low purchases by textile mills during the last week.
The textile sector, along with other industries, is being adversely affected due to the increase in cost of production due to the government’s drastic hike in energy and gas prices.
On the other hand, the business volume is negligible due to the strong demand and price of yarn and textile products in the local and international markets.
Strong financial crisis in the market
Recently, the industrialists of Karachi, Sindh and Balochistan went on a protest strike against the huge increase in the price of gas. Apart from this, the industrialists are continuously protesting against the increase in gas price but the government sources KE and gas companies and Ogra are continuously ignoring their appeals and increasing the electricity and gas prices further. It is feared that as a result of this massive hike in energy tariff more industries will suspend their operations.
The textile sector, which is already in dire straits, is being further affected and more textile chains are closing down, further reducing the demand for cotton.
Many industrialists say that instead of losing billions of rupees by striking and closing factories in protest against the increase in gas and energy prices, the officials of all institutions and chambers of commerce should go to Islamabad and meet with the officials and ministers of the relevant institutions. The problem should be solved by dialogue with the concerned authorities.
If they have to stay there for a few days to meet with them, then they should stay for a few days and try to solve the problem.
It has been seen that no one takes into account the strikes, it is not wise to lose crores of rupees by going on strike.
Daily wage earners and employees are also affected. Institutional authorities should act wisely and take positive action.
According to the quality of cotton in Sindh province, the price of cotton is in between Rs 15,500 to Rs 18,000 per maund, and the price of Phutti is in between Rs 5,000 to Rs 7,000 per 40 kg.
In the province of Punjab, the price of cotton is in between Rs 15,800 to Rs 18,000 per maund and the price of Phutti is in between Rs 6,000 to Rs 8,000 per 40 kg. In Balochistan province, the price of cotton was Rs 16,500 to Rs 17,000 per maund the price of Phutti was Rs 6,000 to Rs 8,200 per 40 kg.
The Spot Rate Committee of the Karachi Cotton Association stabled the rate of cotton at Rs 17,000 per maund.
Naseem Usman, chairman of Karachi Cotton Brokers Forum, said that the price of cotton remained stable in the international market. The rate of Future Trading of Cotton after fluctuation remained at Rs 81.40 American cent per pound.
According to USDA’s weekly export and sales report, 116,400 bales were sold for the year 2023-24.
China was at the top by buying 59,100 bales. Macao was in second place by purchasing 17,900 bales. Bangladesh bought 16,900 bales and came third.
29,600 bales were sold for the year 2024-25. Turkey was at the top by buying 13,200 bales. Guatemala was second with 8,100 bales. Thailand bought 5,300 bales and ranked third.
The Export Advisory Council (EAC) on Friday held its inaugural meeting under the chairmanship of Caretaker Minister for Commerce, Dr Gohar Ejaz, charting the course for Pakistan’s $ 100 Billion Export Vision.
The council considered proposals to elevate domestic exports to $50 billion within the next five years, said a news release here.
The minister expressed confidence that, with concerted efforts and strategic initiatives, Pakistan’s textile exports could reach $50 billion, contributing significantly to the country’s economic growth.
He stressed that a robust export strategy could potentially alleviate the burden of debt, positioning Pakistan competitively in the global market. Envisioned Pakistan’s gross domestic product (GDP) to rise to US 1 trillion dollars which could increase average per capita income in Pakistan threefold, he added.
He emphasized that Pakistan needed export-driven growth to alleviate the balance of payments problem.
The minister also underscored the significance of the textile sector, acknowledging its largest share in the country’s exports. He emphasized that despite this, the sector operated below its full potential.
To address this, the council discussed plans to organize a Textile Expo, a dedicated platform aimed at boosting textile exports. Comprising prominent figures in the export sector, the council boasts members including Mussadiq Zulqarnain, Fawad Anwar, Shahid Surti, Mian Ahsan, Yaqub Ahmed, Aamir Fayyaz Sheikh, Shahid Abdullah, and Ahmed Kamal.
The collective wisdom and expertise of these industry leaders were harnessed during the meeting to address pressing challenges faced by Pakistan’s exports.
Ineffective role of Trading Corporation of Pakistan, non payment of announced fixed price to farmers, silence of other departments on the non payment of announced prices at the time of cultivation which was announced at the time of harvesting are the issues that may affect future cotton cultivation.
Our annual production potential is 18 to 20 million bales of cotton but we are producing only half of it.
There are many viable proposals for increasing cotton production and addressing the challenges of climate change, but the problem is of implementation.
Without investing in cotton research and development and solving the problems of the biggest cotton research body like Pakistan Central Cotton Committee, you cannot get the desired results. Without the PCCC becoming a strong apex body, we will be standing here for the next ten years or maybe even longer.
Correct determination of the national direction is possible only by working under Pakistan Central Cotton Committee, an apex body of all public and private sectors working on cotton for the revival and development of cotton.
Individual research and development work in the field of cotton is meaningless, it can be made effective only if individual activities are brought under one umbrella.
Copyright Business Recorder, 2023
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