Eighty-four textile mills declared defaulter

The International Cotton Association (ICA) has declared 84 textile mills of Pakistan as defaulter.

Cotton Ginners Forum chairman Ahsanul Haq told The Express Tribune that the International Cotton Association (ICA) took the decision over Pakistan textile mills' failure to honour their procuring agreements. After this development, the defaulter mills will not be able to import cotton from any part of the world.

As per statistics issued by Pakistan Cotton Ginners Association, Pakistan produced 5.2 million cotton bales till the end of November 2024, which was 33 percent less than the bales production during the corresponding period of the last year. In view of low production, it was estimated that the rate of cotton and bales would increase in the local market. In contrast to expectation, the prices went down as the textile mills preferred to import cotton and thread from international market after 18 percent sales tax was imposed on textile mills.

The decline in the cotton and bales prices is causing concern among ginners and growers that may further decrease the cotton production in the country.

Ahsanul Haq advised the government to withdraw 18 percent sales tax on the purchase of cotton and thread to support local cotton industry and prevent transfer of foreign exchange in the shape of import.