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LAHORE: The Spot Rate Committee of the Karachi Cotton Association (KCA) on Tuesday increased the spot rate by Rs 500 per maund and closed it at Rs 18300 per maund.

Cotton Analyst Naseem Usman told that the local cotton market remained on Tuesday remained steady and the trading volume remained satisfactory.

He also told that the rate of cotton in Sind is in between Rs 18,000 to Rs 18,500 per maund. The rate of cotton in Punjab is Rs 18500 per maund. The rate of Phutti in Punjab is in between Rs 7080 to Rs 8500 per 40 Kg. The rate of Phutti in Punjab is in between Rs 7000 to Rs 8000 per 40 Kg. The rate of Phutti in Balochistan is Rs 8400 per 40 Kg.

7000 bales of Tando Adam were sold at Rs 17800 to Rs 19000 per maund, 3600 bales of Sanghar were sold at Rs 17800 to Rs 19000 per maund, 1200 bales of Mir Pur Khas were sold at Rs 18000 to Rs 18500 per maund, 3000 bales of Shahdad Pur were sold at Rs 18000 to Rs 18700 per maund, 400 bales of Hala were sold at Rs 18000 to Rs 18500 per maund, 400 bales of Golarchi were sold at Rs 18100 to Rs 18500 per maund, 400 bales of Chichawatni were sold at Rs 19800 per maund, 200 bales of Khanewal were sold at Rs 18900 per maund, 200 bales of Bureawala were sold at Rs 18900 per maund and 200 bales of Mungi Bangla were sold at Rs 19000 per maund.

Rejecting the government’s 10 per cent Super Tax, Pakistan Hosiery Manufacturers & Exporters Association (PHMEA) claimed, it may slow down the economy

Kashif Zia, Chairman, PHMEA, said, the textile sector is already paying 29 per cent tax. Further taxes would damage the sector badly. The interest rate of 13.75 per cent would slow down the economy, he claimed.

Zia urged the government to bring more people into the tax net rather than imposing more taxes on existing taxpayers.

Prime Minister Shehbaz Sharif recently announced a super-tax of 10 per cent on large-scale manufacturers and industries in the country in order to address the economic woes of the country.

Pakistan’s cotton imports are on the rise again.After importing just 3.1 million bales (of 170kg) during first nine months, over 1.1 million bales made their way through ports of entry during April and May 2022. At this rate, the fiscal year may now close with imports of 4.5 million bales, and an import bill of over $1.9 billion, highest ever in country’s history.

Although initial forecast for now closing trade year (2021-22) placed imports at 5 million bales, demand for foreign cotton slowed down significantly during the Jul – Dec ‘22. This was driven in part by upbeat trend of local cotton arrivals, which rose from 7 million bales during FY21 to 8.3 million bales by season end. Meanwhile, a surge in international prices by 54 percent on average also slowed down demand for upland and other imported varieties.

The Spot Rate Committee of the Karachi Cotton Association on Tuesday increased the spot rate by Rs 500 per maund and closed it at Rs 18300 per maund. The Polyester Fiber was available at Rs 325 per kg.

Copyright Business Recorder, 2022

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