Pakistan's yarn exports to China surpass $100 million.

Pakistan's cotton yarn exports to China are off to a strong start in 2024, exceeding $100 million in the first two months. This marks a 98 per cent increase compared to the same period last year, driven by a promising cotton harvest. China's import data reveals Pakistan as the second-largest exporter of uncombed single cotton yarn to China this year, following Vietnam. This category specifically saw a surge, with exports reaching $57.77 million in the first two months, compared to $14.54 million in 2023.

Experts believe this trend will continue throughout the year due to a good cotton yield. This presents a valuable opportunity for Pakistan to expand its yarn exports to China beyond Siro Yarns and include high-quality cotton, carded, and combed varieties.

However, challenges remain. While Pakistan enjoys a free trade agreement (FTA) with China, it faces competition from India, especially in non-Siro yarns, despite India's higher import duty. Vietnam, with similar duty-free access, is another competitor.