Pakistan 100 Garment Spinning Factories May Close

Pakistan insiders said that as the price of cotton rose to 7000 rupees / maund, Pakistan may have 100 spinning mills facing the fate of closure.

On the other hand, the textile industry is also facing an unfavorable situation, which makes yarn sales price lower than the market price by 15%.

Cotton and lack of funds, cotton procurement price as high as 7000 rupees / maund, this is the highest cotton purchase price has never appeared in history, which is the main reason leading to the closure of the spinning mill.

Now, the government should take short-term measures for the free market mechanism.

Since last year, cotton prices have risen all over the world, especially in China.

In addition, the Ministry of textile industry prohibits the export of yarns, one after another restricting the free market mechanism, which affects the value-added sectors of the textile industry.

Cotton prices suddenly soared, pushing spinning entrepreneurs to the brink of precipice, which is also not conducive to the operation of value-added enterprises.

For these reasons, global buyers lose confidence and trust in Pakistan's value-added sector as a supplier.

During this period, 15% of the export duty of yarn will be extended to September. However, as the Ministry of textiles seriously and seriously considers the abolition of the 15% regulatory tax in July 27th, it can not be extended until September. This is done to help farmers, because the delay will lead to the closure of more spinning factories and the chaos of cotton growers.

Therefore, in order to avoid more harm to cotton farmers, the government will reconsider the policy decisions made so far.