KARACHI:
A significant downward trend in cotton prices in Pakistan and around the world has led to a continued decline in exports of cotton products, raising fears that, like last year, the majority of cotton ginners will again face heavy financial losses this season.
The entire cotton industry is facing one of the worst economic crises in its history, while many textile and ginning factories have also started to close their doors.
Ehsan-ul-Haq, chairman of the Cotton Ginners Forum, told The Express PK Press Club that over the past week, the price of cotton in the local market fell by Rs 500 per mah, bringing it down to Rs 15,500 per mah.
He said that with Pakistan having the highest electricity tariffs and interest rates in the region compared to rival countries, the decline in textile exports has plunged the local cotton industry into an extraordinary crisis.
Haq said that the government of Pakistan should, instead of spending over Rs 600 billion annually on the Benazir Income Support Program (BISP), focus on protecting local industries and develop a strategy to reduce production costs.
The BISP is a federal program to reduce poverty through unconditional cash transfers. Launched in July 2008, it is the largest social protection program in the country.
Haq further said that an important meeting of the Pakistan Cotton Council, headed by Deputy Prime Minister Ishaq Dar, would be held today (Monday) in Islamabad, where crucial decisions are expected regarding the revival of the cotton sector under the Pakistan Cotton Plan 2025-26.
He also suggested that instead of focusing only on reviving cotton cultivation, there was an urgent need to formulate a plan to boost cotton consumption in Pakistan so that closed textile mills and ginning mills could be reopened and brought back into operation.
