Cotton yarn exports to China surge 66%
In a report, the Ministry of Planning assessed that Sindh’s cotton crop had been completely wiped out and 70% of the rice crop damaged. photo: file
Pakistan’s cotton yarn exports to China reached $166.37 million, an increase of 65.85%, in the first quarter of 2024, according to statistics of the General Administration of Customs of the People’s Republic of China (GACC).
In the first quarter (January-March) of the current calendar year, imports of “uncombed single cotton yarn containing 85% or above” (commodity code 52051200) from Pakistan crossed $99.12 million, compared with $72.70 million in the same period of last year.
Similarly, imports of cotton yarn (commodity code 52051100) touched $65.78 million, up from $26.28 million in the corresponding period of the previous year.
Keywin Trading Ltd General Manager of China Operations Sajjad Mazahir told China Economic Net that China’s increasing demand for Pakistan’s cotton textiles came because the Chinese industry balanced itself with both exports and local downstream orders. A few years ago, Pakistan’s textile products were in demand only for exports but now it has taken a good market share in China’s domestic market too.
Currently, Pakistan’s supplies include cotton, cotton yarns and Griege fabric. They were preferred by many customers due to their competitive prices and quality. Yet, Pakistan needs to do much to diversify its textile exports. “The textile industry in Pakistan is facing challenges from high cost of electricity and slow demand globally, and the Chinese market gives Pakistani exporters ample opportunities,” he added.
Mazahir said that for diversification, Pakistan had to provide finished products to the local Chinese market and a lot of effort was required to leverage advantages of the Pakistan-China free trade agreement (FTA).
“Though most of our products are covered under the zero duty structure, many cannot enter Chinese markets in good volumes, such as home textiles, towels, apparel, etc,” he added. This article originally appeared on China Economic Net
Published in The Express Tribune, May 12th, 2024.
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