Pakistan’s textile sector struggles with shortfall in cotton deliveries

WEB DESK: In the latest report from the Pakistan Cotton Ginners Association (PCGA), it has been revealed that cotton arrivals in Pakistan have reached 8.39 million bales as of March 01, 2024.

This figure reflects a significant shortfall of approximately 32 per cent when compared to the season’s target.

A slight uptick of 0.11 per cent has been observed in cotton arrivals since the data for February 15, where the total arrivals were recorded at 8.38 million bales.

However, on a year-on-year basis, there has been a notable increase of 72.16 per cent, demonstrating a substantial growth compared to the 4.88 million arrivals recorded in the Same Period Last Year (SPLY).

Breaking down the data, it was found that cotton arrivals from Sindh province have experienced a decline of 15.6 per cent YoY, reaching 4.11 million bales as of March 01.

In contrast, cotton arrivals from Punjab province, another crucial cotton-producing region, have witnessed a significant surge of 42.79 per cent YoY, totaling 4.28 million bales.

Comparing the figures to the previous fortnight’s data, arrivals through Sindh and Punjab have marginally increased by 0.03 per cent and 0.32 per cent, respectively, during the review period.

The chairman of the Cotton Ginners forum, highlighted the challenges faced by textile mills, including closures.

He attributed these difficulties primarily to the record-high electricity tariffs. The textile industry, a vital component of Pakistan’s economy, is currently navigating a challenging phase.

Pakistan holds a significant position among the top ten cotton-producing countries globally, with cotton and textile products being major contributors to the country’s exports.

Despite this, the output remains below expectations, posing concerns for the industry’s future.

Read next: PKR loses 7 paisa versus US dollar