LAHORE: Kristin K Hawkins, United States Consul General in Lahore, and All Pakistan Textile Mills Association (APTMA) office-bearers discussed ways to foster bilateral trade and economic relations between Pakistan and the United States of America.
Kamran Arshad, Chairman APTMA, Asad Shafi, Chairman North, Ahmad Shafi, Vice Chairman, Mohammad Qasim, Treasurer, Haroon Ellahi, senior Executive, former Chairman Ali Ahsan, and Secretary General Raza Baqir along with senior members of APTMA representing leading textile groups welcomed Kristin Hawkins, William Campbell, Economic Chief and Amna Anis Economic Specialist.
They discussed the enormous potential to work together in the field of cotton and textile besides expanding trade and investment relations in other focused areas reducing trade deficit and diversifying major commodities of trade between both countries in the wake of US reciprocal tariffs.
Both sides were of the view that Pakistan has strong potential to grow in textile and other sectors. APTMA leadership continued to focus on engagements and dialogue with their American counterparts to uplift trade volume and to gain maximum benefit of economic partnership between both the countries.
Speaking on the occasion, Kamran Arshad made a detailed presentation on textile industry of Pakistan. He pointed out that Pakistan’s domestic cotton production has declined over the years and even this year huge quantity of cotton would be required to be imported due to poor cotton crop.
He said the major supplier of cotton to Pakistan is the USA. Pakistan is the largest importer of US cotton in the world. He added that the import of US cotton compensate loss in production of local cotton.
According to Kamran, the availability of cotton and other inputs is essential for economy of the country as textile constitutes 62% of total exports from Pakistan.
Kamran Arshad highlighted issues being faced by textile industry including withdrawal of Regionally Competitive Energy Tariff for both electricity and gas. He specifically mentioned discriminatory tax treatment for local supplies and import of inputs under Export Facilitation Scheme (EFS) which allows tax-free import of raw materials but levies sales tax @ 18% on procurement of locally produced goods. This discrimination has forced closure of 120 spinning mills and more than 800 ginning factories, increasing import of yarn from $340 million last year to $800 million this year.
Kamran emphasised for restoration of even playing field both for imports and local supplies under EFS to ensure continuous operations of textile industry as any shut down of textile sector would render millions as jobless, creating catastrophic situation endangering survival of the country. He stressed on evolving a mechanism to import US cotton under GSM-102 against export of textile products to the US. He added that proceeds of Pakistan textile export to the US may be used as collateral through the mechanism of an escrow account whereby this liability is deducted from the export proceeds of Pakistan textile import into the US.
Speaking about the strength of the textile industry in Pakistan and further expansion of bilateral trade between the US and Pakistan, Asad Shafi, Chairman North said that the US is Pakistan’s largest trading partner with a total bilateral trade of $9.85 billion in 2024. According to him, total exports of Pakistan to the US stood at $5.12 billion out of which $3.93 billion or 77% were textile and apparel. As against this, Pakistan imported $2.14 billion goods from the US in 2024 of which cotton imports were more than $700 million.
Asad stressed upon promotion of US cotton linkages with Pakistan textile industry, as well as, promotion of toll manufacturing in Pakistan by US textile industry. He said there is a need for technology transfer to Pakistan for high yielding cotton seed and synergies with US cotton research institutes for better quality. He also sought capacity building of agricultural research institutions in Pakistan and technology transfer for cotton traceability.
Asad said that the United States should facilitate entry of international seed companies with transgenic technologies besides introduction of improved, genetically modified, and certified seed. He also spoke on the importance of establishing joint ventures between Pakistan and US investors.
Meanwhile, speaker of the Punjab Assembly, Malik Muhammad Ahmad Khan, met with the United States Chargé d’Affaires, Natalie A. Baker, and US Consul General Kristin Hawkins, at the Punjab Assembly. The Speaker warmly welcomed the distinguished guests and termed their visit to the Assembly as a positive step towards strengthening institutional ties.
On this occasion, Malik Muhammad Ahmad appreciated Natalie Baker’s constructive and dynamic role in Pakistan, stating that Pakistan–US relations are based on mutual trust and a valued strategic partnership. He emphasized that the United States’ proactive and constructive role in ensuring peace in South Asia is of utmost importance.
The meeting included detailed discussions on Pakistan–US relations, regional peace, climate change, food security, educational collaboration, and cooperation in other vital sectors. The Speaker expressed a desire to further deepen ties between Punjab and the US state of California, noting that the Pakistani-American community continues to serve as a robust bridge between the two nations.
He further remarked that Pakistan views the United States as a key global partner in addressing climate change, development, and food security, and wishes to expand this strategic cooperation even further.
Natalie Baker affirmed that the United States aims to further strengthen diplomatic engagement with Pakistan and will continue to support democratic institutions and parliamentary exchanges.
Kristin Hawkins expressed her intent to enhance collaboration in the fields of education and social development.
The meeting was also attended by Member Provincial Assembly Iftikhar Chachar, Secretary General of the Punjab Assembly Chaudhry Amer Habib, Principal Secretary to the Speaker Imad Hussain Bhalli, and Malik Taimoor Ahmad Khan.
Copyright Business Recorder, 2025
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