ISLAMABAD: Pakistan’s cotton producers have made a remarkable comeback after suffering massive losses due to last year’s monsoon floods, with the commerce ministry announcing a 71 percent year-on-year growth in the ongoing year by issuing a brief statement on Tuesday.
Cotton is the main raw material of Pakistan’s textile sector which contributes about 60 percent to the overall exports of the country.
Torrential rains during monsoon last year triggered flash flood, destroying people’s houses and farmlands across much of the country.
The situation caused a huge setback to cotton production sector that experienced a 34 percent year-on-year decline, according to the official figures.
However, the ministry said in its statement that the “astounding 71 percent year-on-year growth” had “not only surpassed the previous year’s figures but also exceeded expectations.”
“Cotton arrivals crossing the 5 million bales mark on October 1, 2023, is a momentous achievement for Pakistan,” Dr. Gohar Ejaz, the interim commerce minister, said while commenting on the development. “Last year, our total crop was 5 million bales, and this year, we are anticipating a bumper crop of 12 million bales.”
“This remarkable growth showcases the dedication and hard work of our farmers and the resilience of our cotton industry,” he added.
The minister also promised to support and promote the cotton sector of the country, saying it had always played an “indispensable role” in Pakistan’s economic development and global competitiveness.
According to the textile industry stakeholders, the country’s cotton production has been shrinking in recent years.
“The cotton output in Pakistan is declining mainly due to the climate change-related issues and reduction in the cultivation area,” Chaudhry Waheed Arshad, a top official of Pakistan Cotton Ginners Association, told Arab News earlier this year in January.
Pakistan’s cotton production bounces back after last year’s losses, records 71 percent growth
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Pakistan’s cotton production bounces back after last year’s losses, records 71 percent growth
- The country witnessed a massive decline of 34 percent in cotton production last year due to the floods
- The government calls this year’s production level ‘momentous,’ expects a bumper crop of 12 million bales
Pakistan regulator amends law to facilitate capital raising by listed companies
- The amendments address challenges faced by listed companies when raising further capital from existing shareholders through a rights issue
- Previously, listed companies were prohibited from announcing a rights issue if the company, officials or shareholders had any overdue amounts
KARACHI: The Securities and Exchange Commission of Pakistan (SECP) has notified amendments to the Companies (Further Issue of Shares) Regulations 2020 to facilitate capital raising by listed companies while maintaining adequate disclosure requirements for investors, it announced on Monday,
The amendments address challenges faced by listed companies when raising further capital from existing shareholders through a rights issue. Previously, listed companies were prohibited from announcing a rights issue if the company, its sponsors, promoters, substantial shareholders, or directors had any overdue amounts or defaults appearing in their Credit Information Bureau (CIB) report.
This restriction constrained financially stressed yet viable companies from raising capital, even in circumstances where existing shareholders were willing to support revival, restructuring, or continuation of operations, according to the SECP.
“Under the amended framework, the requirement for a clean CIB report will not apply if the relevant persons provide a No Objection Certificate (NOC) regarding the proposed rights issue from the concerned financial institution(s),” the regulator said.
The notification of the amendments follows a consultative process in which the SECP sought feedback from market stakeholders, including listed companies, issue consultants, professional bodies, industry associations, law firms, and capital market institutions.
The amendments are expected to enhance market confidence, improve access to capital for listed companies, and strengthen transparency within the rights issue framework, according to the SECP.
“To ensure transparency and protect investors’ interests, companies in such cases must make comprehensive disclosures in the rights offer document,” the regulator said.
“These disclosures must include details of any defaults or overdue amounts, ongoing recovery proceedings, and the status of any debt restructuring.”
The revised regulations strike an “appropriate balance” between facilitating corporate rehabilitation and enabling investors to make informed investment decisions, the SECP added.
