Acting US envoy, Pakistan’s APTMA officials discuss trade ties
LAHORE: Acting United States’ Ambassador to Pakistan, Natalie A Baker, and All Pakistan Textile Mills Association (APTMA) discussed ways and means to foster bilateral trade and economic relations between Pakistan and the United States of America.
APTMA Chairman Kamran Arshad, Chairman North Asad Shafi, Vice Chairman Ahmad Shafi, Former Chairman Rahim Nasir, Haroon Ellahi, Ahsan Shahid, Faisal Jawed, Amin Rehman Senior Executives, and Secretary General Raza Baqir along with senior members of APTMA welcomed Natalie A Baker who was accompanied by Stetson Sanders, US Consul General at Lahore, William Campbell, Political and Economic Chief and Amna Anis, Economic Specialist.
They discussed the enormous potential to work together in the fields of cotton and textile besides expanding trade and investment relations in focused areas, reducing trade deficit and diversifying major commodities of trade between both the countries in the wake of US reciprocal tariffs.
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Both sides were of the view that Pakistan has strong potential to grow in textile apparel and other sectors.
APTMA leadership continues 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, APTMA Chairman 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 US. Pakistan is the largest importer of US cotton in the world.”
He added the import of US cotton compensated loss in production of local cotton.
Kamran said the availability of cotton and other inputs was essential for economy of the country as textile constituted 62 percent 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 pointed out that more than 100 spinning mills were lying closed due to higher energy costs, excessive tax incidence and voluminous import of yarn from various countries.
Kamran emphasized for enhancing cooperation between textile sectors of both the countries to ensure not only revival of textile industry in Pakistan but also to guarantee cost effective textile supplies from Pakistan to US consumers. He stressed on evolving a mechanism to import US cotton under GSM-102 against export of textile products to US. He added that proceeds of Pakistan textile exports to US may be used as collateral through the mechanism of an escrow account whereby this liability is deducted from the proceeds of Pakistan’s textile exports the US markets.
Speaking about the strength of the textile industry in Pakistan and further expansion of bilateral trade between US and Pakistan, Asad Shafi, Chairman North said US is Pakistan’s largest trading partner with a total bilateral trade of more than seven billion dollars in 2024. According to him, total exports of Pakistan to the US stood at USD5.12 billion out of which USD3.93 billion or 77 percent were textile and apparel. As against this, Pakistan imported USD2.14 billion goods from US in 2024 of which cotton imports were more than USD700 million.
Asad stressed upon promotion of US – Pakistan cotton linkages and promotion of textile 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 the US 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.
Copyright Business Recorder, 2025