Pakistan’s textile traders fear cotton shortage may trigger export decline

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A Pakistan textile labourer fixes broken threads at a power loom in Karachi, on January 25, 2019, the financial capital and the largest industrial city of Pakistan. (AFP)
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Chairman of All Pakistan Textile Mills Association Dr. Amanullah Kassim Machiyara and Chairman of Karachi Cotton Association Khawaja M Zubair address a news conference at the APTMA House in Karachi on November 5, 2019, on the issue of declining cotton crop in the country and its impact on textile exports. (AN Photo)
Updated 06 November 2019
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Pakistan’s textile traders fear cotton shortage may trigger export decline

  • Pakistan expects a shortage of about six million cotton bales against the targeted 15 million for the current fiscal year
  • Harsh weather, use of substandard pesticides, and low-quality seeds are among the reasons behind the production decline, say stakeholders

KARACHI: Pakistan’s textile exporters demanded duty-free import of cotton in a news conference here on Tuesday, pointing to the fact that the country was expected to suffer a shortage of the commodity by about six million bales that were likely to trigger a significant decline in its textile exports.

Cotton has always been viewed as a cash crop in Pakistan, but its yield has progressively declined in the last couple of years due to climate change, the use of uncertified pesticides and low-quality seeds. As a result, the country’s cotton crop suffered by 21 percent to 6.1 million bales as compared to 7.7 million bales produced in the same period during the last year FY19.

Pakistan has set a target of 15 million bales for the current fiscal year from a cultivated area of 2.895 million hectares in 2019-20.

“Almost 70 percent of cotton has arrived at ginning factories and we expect that the final output will only be 9 million bales for the current season. This implies a shortfall of 6 million bales,” Chairman of All Pakistan Textile Mills Association (APTMA) Dr. Amanullah Kassim Machiyara said at a news conference in Karachi.

Cotton is the main input of Pakistan’s textile sector that contributes almost 60 percent of the total exports of the country. During the last fiscal year, the country’s total exports stood at $22.98 billion out of which textile groups contributed $13.33 billion as compared to $13.52 billion recorded in the year before, according to the Pakistan Bureau of Statistics.

Exporters point out that Pakistani cotton has become costlier due to the imposition of duty and tax. Stakeholders say they are paying 10 percent duties and taxes on the import of cotton as well, making textile products uncompetitive in the international market.

“After payment of heavy duties and taxes imposed on cotton import, the cost of the basic raw material of the textile industry considerably increases, making the local textile industry uncompetitive in the international market,” Khawaja M. Zubair, Chairman of Karachi Cotton Association (KCA), said.

“The export of value-added cotton products and foreign exchange earnings of the country are being badly affected,” he added.

The stakeholders asked the government to urgently take steps to address the basic issues of cotton-producing areas, including encroachments on cotton fields.

“The government will have to take measures to provide certified cotton seeds because there is no other option. Apart from that, about 700 pesticide companies are operating in the country. These must be reduced to 70 or 80 after verification. The farmers are also suffering due to low productivity,” the APTMA chairman observed.

Textile players also asked the government to allow duty-free import of all types of cotton.

“If the country wants to impose a ban on the import of cotton from India, there are no problems since its relations are not good with the neighboring state. But the import should be allowed from other countries, including Africa,” Dr. Machiyara added.

The exporters also complained about the liquidity issue, pointing to the fact that their export refunds were stuck up with the government.


Fear, shock grip southwestern Pakistan day after deadly separatist attacks

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Fear, shock grip southwestern Pakistan day after deadly separatist attacks

  • Separatist militants carrying assault rifles stormed banks, jails, police stations and military installations, killing 31 civilians and 17 security personnel
  • Mobile Internet, train services remained suspended across Pakistan’s Balochistan on Sunday, with major roads and businesses deserted after attacks

QUETTA: Residents in the southwestern Pakistani city of Quetta were in shock and feared more violence, they said on Sunday, following deadly separatist attacks that killed nearly 200 people, including militants, security personnel and civilians, in the Balochistan province.

Authorities in Balochistan are battling one of the deadliest flare-ups in years as ethnic Baloch separatists step up assaults on security forces, civilians and infrastructure in the resource-rich province bordering Iran and Afghanistan.

Separatist militants carrying assault rifles stormed banks, jails, police stations and military installations in a string of coordinated attacks in several cities of Balochistan, including the provincial capital of Quetta, early Saturday.

Officials said the attacks killed 31 civilians and 17 security personnel, while 145 militants were killed in skirmishes and follow-up operations. The assaults were claimed by the Baloch Liberation Army (BLA) separatist group.

“The fear and anger are palpable in the city’s atmosphere following yesterday’s attacks at various locations in Quetta and other cities of Balochistan,” Zain Ali, a resident of Quetta’s Brewery Road, told Arab News on Sunday.

“We used to think that there is insurgency in Balochistan but Quetta is safe but that perception has been shattered.”

Balochistan has long been the site of a separatist insurgency that has intensified in recent years, with the BLA emerging as the most influential of separatist groups operating in the region.

The separatists, who frequently target security forces, foreigners, government officials and non-local Pakistanis, accuse the central government of stealing the region’s resources to fund development elsewhere in the country. The Pakistani government denies the allegations and says it is working for the uplift of local communities in Balochistan.

Saturday’s pre-dawn attacks by BLA targeted high-security government installations in Balochistan’s Quetta, Gwadar, Dalbandin, Pasni, Nushki, Kalat, Turbat and Mastung cities. 

Ali, who teaches at a private school and stepped out of home to buy groceries on Sunday, said he experiences an “unexplainable fear” of a sudden ambush by armed men on his way to downtown Quetta.

“If the capital is not safe, how would you expect security in rural areas of Balochistan,” Zain said. “The government has to take decisive action against these elements.”

On Sunday, mobile Internet and train services remained suspended across the province, with major roads and businesses deserted after the attacks.

Hafiz Ameer Muhammad, a security guard at a government’s run bank in Quetta’s Hazar Ganji area, recounted the horror when the militants stormed the city’s busiest business market, attacking several bank branches and torching goods and equipment.

“They came here at 10am and fired upon the gate but we didn’t let them in,” he told Arab News. “They broke the window and got inside and threatened us to hand over the weapons or face death.”

Dr. Mansoor Tareen, a dentist at Quetta’s Liaquat Bazar, said he feared more such attacks.

“Unfortunately, the government is limited to media and newspapers,” he said.

Pakistan’s military said the attacks were launched by “Indian-sponsored Fitna al Hindustan,” a reference it uses for Baloch separatist groups. India has denied any involvement.

In a statement on Saturday, the BLA said it had launched “Operation Herof 2.0,” claiming responsibility for attacks at multiple locations across Balochistan. Saturday’s assaults were similar to coordinated attacks carried out by the group in Aug. 2024, which killed dozens of people in various districts of Balochistan.

Balochistan Chief Minister Sarfraz Bugti has vowed his government would not surrender and would fight the militants until they are eliminated.

“We will fight this war for 1,000 years,” he said on Sunday. “This country is ours. This is our motherland. We will fight for it.”