Karachi: The cotton textile industry, the delight and pleasure of Pakistan’s agro-industry, goes by means of a severe downturn as a result of ongoing financial crisis in the nation.
One of the highest textile producers in the world, Pakistan’s textile exports had been valued at $19.three billion in 2021. It constituted greater than half of Pakistan’s complete exports that yr.
However, many small textile mills and manufacturing items in Pakistan that make bedsheets, towels and jeans for export to Europe and the US have been shut down because of a severe scarcity of cotton. As if that was not sufficient, the nation’s cotton textile industry has been hit with a latest tax hike.
The crisis in the cotton textile industry comes as Pakistan is fighting alarmingly low overseas trade reserves, excessive inflation and hard rules imposed by the International Monetary Fund (IMF).
The cotton textile industry in Pakistan is discovering it extraordinarily troublesome to acquire needed uncooked supplies and is struggling to satisfy orders from worldwide shoppers.
The scarcity of overseas trade reserves has resulted in hundreds of delivery containers with uncooked supplies, medical tools and meals gadgets caught at Karachi port.
The crisis is Pakistan’s cotton textile industry has put hundreds of thousands of staff in hazard of shedding their jobs.
According to textile associations in Pakistan, round 7 million staff have misplaced their jobs in latest months.
The devastating floods that had swept Pakistan final yr had destroyed a lot of the cotton crop.
Pakistan’s State Bank has mentioned that the nation’s overseas trade reserves dipped to $4.three billion final week – the bottom since February 2014. Around $three billion of that quantity has been given by Saudi Arabia to shore up the foreign exchange reserves, however shouldn’t be meant for use.