Last update: Wed, 01 Jun 2016 04am

Cotton and Textiles: Pakistan


Prices slid on the cotton market on Tuesday in the process of modest trading activity, dealers said. The official spot rate was lower by Rs 50 to Rs 5,500, dealers said. In ready session, around 1200 bales of cotton changed hands between Rs 4200 and Rs 5700, they said. Some brokers observed main participants were not taking interest in the trading because of lack of fresh leads.
The Punjab government has set a target of bringing 5.7 million acres of land under cotton cultivation this year with a production target of 9.5 million bales. "All resources will be used to ensure achieving these targets as cotton is an important crop in Pakistan's economy having 1.5 percent share in the gross domestic product," said Punjab Agriculture Minister Doctor Farrukh Javed as he chaired a meeting to review the cotton cultivation on Tuesday.
The Acting Chairman of All Pakistan Textile Mills Association (Aptma) Punjab Syed Ali Ahsan has urged the government to maintain the exemption from electricity loadshedding to the textile industry prime consumers of electricity on independent feeders during the Holy month of Ramadan. He said the proposed 10 hours loadshedding, starting half an hour before Iftar and ending half an hour after Sehr, would force the industry to close down one shift and lay off tens of thousands of workers across the province of Punjab.
Shaikh Mohammad Shafiq, central chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), has said that PRGMEA's members are very thankful to Finance Minister, Senator Mohammad Ishaq Dar for the announcement of the zero-rated regimes - No Payment No Refund, for five export-oriented sector, i.e. value-added textile, carpet, surgical, sports goods and leather.
A lacklustre activity was witnessed on the cotton market on Monday as mills and spinners kept on the sidelines in absence of motivating factors, dealers said. The official spot rate was inert at Rs 5,550, dealers said. In ready session, around 500 bales of cotton from Jhol finalised at Rs 4200, they said. Market sources said that leading participants failed to make several deals ahead of federal budget 206-17.
All Pakistan Textile Association (APTMA) Chairman Tariq Saud Monday appreciated timely decision of the federal government to reintroduce 'Zero Rating or No-Tax and No-Refund Regime' for the textile sector - the largest export oriented sector and contributes more than 55 percent of foreign exchange earnings through exports.
Prices improved modestly on the cotton market on Saturday as some needy mills took interest in fresh buying, dealers said. The official spot rate recovered overnight loss by Rs 50 to Rs 5,550, dealers said. In ready session, around 5000 bales of cotton changed hands between Rs 5500 and Rs 5750, they said. According to the market sources, mills and spinners showed their interest in fresh buying to meet requirements.