Pakistan Textile Industry Feels Cotton Price Rises Spiralling Pressure

Pakistan textile industry is one of the largest foreign exchange earning industries in China. Its contribution rate to the whole country's exports is 55%. At present, because of the record high cotton prices, it is difficult for the textile industry to continue to develop and it is difficult to maintain its competitiveness in the international market.

As cotton is the main raw material for textile production, cotton prices are rising sharply, which may weaken the textile manufacturing industry, and the cost of energy remains high, which has long been difficult for textile enterprises to bear.

On the market, cotton prices hit a record high of 4400 rupees per pack.

Experts have said that even if energy prices fluctuate, the textile industry can cope with it, but the rise in cotton prices may lead to higher prices of Pakistan textile products and less competitiveness in the global market.

Some believe that the prevailing price rise is due to the global shortage of cotton and the decrease in domestic production this year, while others have different reasons.

Mr Ghulam Rabbani, President of Karachi Cotton Association, pointed out many reasons for stimulating cotton prices to rise.

He said the main reason is that the rupee's appreciation of the US dollar has not only increased domestic cotton prices, but also increased the import price of cotton.

In addition, floods occurred in some major cotton producing provinces, resulting in reduced cotton production and higher prices.

However, the domestic industry believes that market cotton prices are under pressure as Pakistan cotton is attacked by pests, and its output may be lower than the expected 14 million packages, falling to 12 million bales.

In the first month of this fiscal year, although the total export volume expanded, exports declined by 3%.