02102016Wed
Last update: Wed, 10 Feb 2016 11am

Cotton and Textiles: Pakistan

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Bears dominated the cotton market on Tuesday as prices slid owing to lack of buying interest from leading buyers, dealers said. The official spot fell by Rs 50 to Rs 5,350, dealers said. In Sindh, prices of seed cotton low type was lower by Rs 200 to Rs 1800 and Rs 2900, in the Punjab, rates were down by Rs 300 to Rs 2000 and Rs 3050, they said.
Damage due to rains, prevailing low cotton prices, and high cost of inputs, led to lower area under cotton cultivation necessitating import of about $4 billion worth of cotton for domestic consumption, Cotton Commissioner revealed to Business Recorder. Erratic rainfall, poor quality of seeds and drought in some cotton growing areas has resulted in low cotton output of 10.85 million bales against the estimate of 15.49 million bales.
Trading activity failed to sustain week-end's momentum on the cotton market on Monday owing to decline in cotton stock, dealers said. The official spot was unchanged at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 2900, in the Punjab, rates were at Rs 2300 and Rs 3100, they said. In the ready business, around 10,000 bales of cotton changed hands between Rs 5300 and Rs 5700, they said.
Strong demand by spinners kept prices stable on the cotton market on Saturday, dealers said. The official spot rate was unchanged at Rs 5,400, dealers said. In Sindh, prices of seed cotton were at Rs 2000 and Rs 3000, in the Punjab, rates were at Rs 2300 and Rs 3100, they said. In the ready business, over 20,000 bales of cotton changed hands between Rs 4800 and Rs 5650, they said.
Finance Minister Ishaq Dar has said the low production of cotton bales may hit the projected growth target for the current fiscal year. Addressing a news conference here on Saturday the minister spoke on almost all the important issues ranging from recently concluded review with the International Monetary Fund (IMF) mission to growth, planned population census and tried to dispel the growing impression that he was running the economy on taking loan from abroad and consequently contributing to debt escalation as well on the issue of Pakistan International Airlines (PIA). The Finance Minister was flanked by Special Assistant to Prime Minister on Federal Board of Revenue Haroon Akhtar and Chairman of the FBR Nisar Khan.
The European Union recently supported Pakistan Mega Leather Show and sent a delegation of Pakistan's leather sector to India to observe best practices and strengthening relationship among the business communities of both countries.
Pakistan's ready-made garments export grew up by $1.294 million to $1.044 billion during July-December 2015-16, according to Federal Bureau of Statistics (FBS). The statistics released by the FBS showed that the garments export went up by four per cent from $1.006 billion during July-December 2014-15. However, in terms of volume, the ready-made garments export declined by 0.44pc to 15,027,000 dozens in July-December 2015-16 from 15,094,000 dozens in July-December 2014-15.