Though there was an overall decline in exports of Pakistan cotton yarn, the country enjoys a strong position in the one-billion-dollar club. As per official statistics, during the first half of this fiscal, despite stiff competition in global markets, Pakistan’s cotton yarn exports managed to cross a one billion dollar mark.

Pakistan exported cotton yarn worth 1.072 billion dollars during the first half of FY14 compared to 1.1 billion dollars in the corresponding period of last fiscal, a slight decline of 34 million dollars or 3 per cent. On a month-on-month basis, cotton yarn exports presented some improvement and posted an increase of 35 per cent. With the current surge, cotton yarn exports reached 178 million dollars in December 2013 up from 132 million dollars in November 2013, a rise of 46 million dollars.

Though China is one of the world’s largest buyers of cotton yarn, now there is a slowdown in the Chinese market. This has resulted in a decline in exports of the commodity during the first half. However, Pakistan’s cotton yarn exports are expected to increase in coming years. While India has adapted an aggressive marketing strategy as far as cotton yarn exports are concerned, Pakistan on the other hand, is dealing with issues like high production and business costs, rising power rates, hike in labour wages and gas crisis. For the last few years, the country has been proposing a level playing field that could help cotton yarn exporters to compete in the world market. The Pakistan government is also being urged to support the textile sector particularly textile mills and remove hurdles such as sales tax and higher power tariff to see Pakistan cotton industry grow over the years.