The step would ship a adverse message to overseas consumers as cotton yarn was not obtainable within the nation, stakeholders say, including that costs of cotton yarn have elevated after the choice.
Pakistan’s struggling textile business has voiced its disappointment after the Imran Khan authorities rejected a proposal to import cotton from India, the world’s largest producer, saying it’s the want of the hour to keep away from a large export decline, a media report mentioned on Friday.
The federal Cabinet headed by Prime Minister Khan on Thursday rejected the proposal of a high-powered committee to import cotton from India, with Foreign Minister Shah Mahmood Qureshi asserting that there will be no normalisation of ties till New Delhi reverses its resolution to revoke the particular standing of Jammu and Kashmir.
The Cabinet’s resolution has upset the textile export business, the Dawn newspaper quoted Pakistan Apparel Forum chairman Jawed Bilwani as saying.
The textile export sector, which was already underneath strain because of the COVID-19 pandemic, has been repeatedly demanding duty-free import of cotton yarn from everywhere in the world, together with India, to avert any massive loss to textile exports.
Describing Commerce Adviser Abdul Razak Dawood’s advice to permit import of cotton and cotton yarn from India as reasonable and the necessity of the hour, Mr. Bilwani mentioned that the Cabinet should accord severe consideration to the proposal.
The step would ship a adverse message to overseas consumers as cotton yarn was not obtainable within the nation, he mentioned, including that costs of cotton yarn have elevated after the Cabinet’s resolution.
“The government must ensure availability of cotton yarn if it did not want to allow its import from India,” Mr. Bilwani mentioned as he feared large textile export decline if import of cotton yarn from the neighbouring nation was not allowed.
In the present yr, Pakistan confronted a 40% plunge in cotton manufacturing and if it was in contrast with 15 million bales in 2014-2015, then the drop was 50% this yr, he mentioned.
Mr. Bilwani mentioned sea freights have already elevated by 700% because of the pandemic and the products now attain their overseas vacation spot in 105 days as a substitute of 25 days.
“If the government did not want to permit import of cotton yarn from India then it must impose a ban on export of cotton and cotton yarn for at least next six months,” he added.
Pakistan’s U-turn on Thursday got here a day after the Economic Coordination Committee (ECC), underneath newly-appointed Finance Minister Hammad Azhar, really helpful importing cotton and sugar from India, lifting a virtually two-year lengthy ban on its import from the neighbouring nation amidst tensions over the Kashmir challenge.
It had raised hopes of a partial revival of bilateral commerce relations, which have been suspended after the August 5, 2019 resolution of New Delhi to revoke the particular standing of Jammu and Kashmir.
India is the world’s largest cotton producer and second-largest exporter. Gujarat, Karnataka, Andhra Pradesh, Madhya Pradesh and Tamil Nadu are primary cotton rising States.
India’s cotton exports jumped over 40% to 10 million bales (of 170 kg every) within the 2018-19 advertising yr on sturdy abroad demand, particularly from China, in response to business physique CIA.
In May 2020, Pakistan lifted the ban on import of medicines and uncooked materials of important medication from India amid the COVID-19 pandemic.
Ties between India and Pakistan nose-dived after a terror assault on the Pathankot Air Force base in 2016 by terror teams primarily based in Pakistan. Subsequent assaults, together with one on an Indian Army camp in Uri, additional deteriorated the connection.
The ties strained additional after India’s conflict planes pounded a Jaish-e-Mohammed terrorist coaching camp deep inside Pakistan on February 26, 2019 in response to the Pulwama terror assault in 2019 through which 40 CRPF jawans have been killed.
India’s transfer to revoke the particular standing of Jammu and Kashmir in 2019 angered Pakistan, which downgraded diplomatic ties with India and expelled the Indian High Commissioner in Islamabad. Pakistan additionally snapped all air and land hyperlinks with India and suspended commerce and railway companies.