Pakistan’s emerges largest buyer of US cotton

With imports rising continuously, Pakistan has emerged as the largest buyer of American cotton Ehsan-ul-Haq, Chairman, Pakistan Cotton Ginners Forum (PCGF) says. The country recently signed contracts for 72,000 cotton bales from the US in just one week. So far this year, Pakistan has imported over 3 million bales of American cotton—a significant increase partly due to limited domestic cotton supply and the demand for high-quality fiber.

Domestic cotton prices have also increased, touching Rs 18,200 per 40 kg, a rise of Rs 200. The increase in imports underscores Pakistan’s reliance on the US market to support its textile industry, a sector essential to the national economy.

In related developments, Kamran Arshad, Chairman. All Pakistan Textile Mills Association (APTMA), highlighted the importance of expanding cooperation in fiber recycling and renewable energy to support textile exports and create jobs.

Meanwhile Pakistan’s textile sector aims to establish 1,000 garment factories with a $7 billion investment. This will boost exports to $50 billion, create employment for 700,000 people, and generate $20 million in annual garment production per plant.

An important part of Pakistan’s economy, the textile industry accounts for 60 per cent of its exports. Despite its importance, the industry faces significant challenges. Cotton yield has stagnated over the past three decades, with production stuck at 617 kg per hectare in 2020, while countries like China saw their yields rise by over 150 per cent to 2,027

kg per hectare during the same period. Rising energy costs and a lack of specialised leadership have further strained the industry.