KARACHI:
A significant downward trend in cotton prices across Pakistan and the world has led to a continuous decline in cotton product exports, raising fears that, like last year, a majority of cotton ginners may once again face heavy financial losses this season.
The entire cotton chain is facing one of the worst economic crises in its history, while many textile and ginning factories have also begun to shut down.
Cotton Ginners Forum Chairman Ehsan-ul-Haq told The Express Tribune that during the past week, the price of cotton in the local market dropped by Rs 500 per maund, bringing it down to Rs 15,500 per maund.
He said that because Pakistan has the highest power tariffs and interest rates in the region compared to rival countries, the decline in textile exports has pushed the local cotton industry into an extraordinary crisis.
Haq said the Government of Pakistan should, instead of spending over Rs 600 billion annually on the Benazir Income Support Programme (BISP), focus on protecting local industries and developing a strategy to reduce production costs.
The BISP is a federal unconditional cash transfer poverty reduction programme. Launched in July 2008, it is the largest single social safety net programme in the country.
Haq further stated that an important meeting of the Pakistan Cotton Board, headed by Deputy Prime Minister Ishaq Dar, will be held today (Monday) in Islamabad, where crucial decisions are expected regarding the revival of the cotton sector under the Pakistan Cotton Plan 202526.
He also suggested that instead of merely focusing on reviving cotton cultivation, there is a pressing need to formulate a plan to boost cotton consumption within Pakistan so that closed textile mills and ginning factories can be reopened and restored to operation.
