12th September 2022
A delegation of All Pakistan Textile Mills Association (APTMA), led by the Patron-in-Chief Dr. Gohar Ejaz, and senior members Mr. Fawad Mukhtar and Mr. Anwaar Ghani, has left for Tanzania, for sourcing Cotton for Pakistan to fulfill future requirements of cotton in the wake of the destruction caused by the flood in the cotton-growing areas.
Pakistan has been hit by the worst floods in its history, affecting 33 million people and incurring an estimated cost of more than $10 billion of infrastructural damage. According to the latest reports, economic losses and damages caused by the flash floods could range from $15 billion to $20 billion, as the government fears up to 12 million more people will slip into poverty.
The floods have also affected the Cotton crop severely. The current estimates of Cotton losses are 3.5 million bales which are 36% of the crop that was expected this year and the loss is valued at US$1.5 billion.
Pertinent to mention that close to 70 percent of Pakistan’s textile industry, an important source of employment and foreign exchange, uses the cotton produced in the country. Since nearly 35 percent of that is produced in Sindh province by farmers, the sector is girding itself for a shortage.
The flood has made it terribly difficult for the government to reduce its trade deficit targets because while the country needs to import food to “compensate” for lost crops, the textile sector finds itself struggling due to a potential shortage of cotton crops. Cotton prices in Pakistan have already surged sharply over the past few days.
Therefore, Pakistan has to arrange this Cotton at the lowest cost possible on an emergency basis for the sector to continue meeting the export orders. Any delay / non-delivery of export orders will further worsen our ‘Balance of Payments’ which is already under extreme pressure and the industry will lose hard-earned international clients.