Pakistan cotton yarn exports crosses $1 billion mark first half of FY14

Despite overall decline Pakistan cotton yarn exports, it still stands in the one-billion-dollar club. During the first half of this fiscal year, with stiff competition going on in the world markets, Pakistan cotton yarn exports managed to cross one billion dollar mark. Exporters told Business Recorder on Friday that there are only four sectors, with a turnover of over $1 billion during the first half of this fiscal year and cotton yarn is one of them.

According to official statistics, Pakistan exported cotton yarn worth $1.072 billion during the first half of FY14 compared to $1.1 billion in the corresponding period of last fiscal year, depicting a slight decline of $34 million or 3 percent. Month-on-month basis, cotton yarn exports presented some improvement and posted an increase of 35 percent. With current surge, cotton yarn exports reached $178 million in December 2013 up from $132 million in November 2013, showing a rise of $46 million.

China is one of the world’s largest buyers of cotton yarn. Presently, there is some slowdown in the Chinese market, which resulted in a slight decline in the export of the commodity during the first half; however Pakistan’s cotton yarn exports are likely to increase in coming years.

As China is the major buyer of Pakistan’s cotton yarn and approximately some 80-95 percent of the commodity is being supplied to neighbouring country, said Yasin Siddik, Chairman All Pakistan Textile Mills Association (APTMA). India is stands as their major competitor and one of the leading exporting countries of cotton yarn as it gets government subsidy. Presently, India has adopted an aggressive marketing strategy to capture the world market.

The major reasons for slow growth in Pakistan is the high cost of doing business followed by rising power rates, labour wages, and gas crisis. However, he said, it is good that the overall textile exports are gradually increasing; and these have posted an increase of 8 percent in the first half of this fiscal year.

For the last few years, they are insisting on a level playing field that could help cotton yarn exporters to compete in the world market. The Pakistan government is also being urged to support the textile sector particularly textile mills and remove hurdles such as sales tax and higher power tariff to see Pakistan cotton industry grow over the years.