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Related Keywords: bailout package for cotton farmers, collapse of the crop in Pakistan, cotton cultivation in Pakistan, cotton exports worth, cotton farmers, cotton output in Pakistan, cotton prices, cotton prices in Pakistan, textile exports of Pakistan

Mian Shahid, chairman of United International Group, on Sunday demanded a bailout package for cotton farmers affected by recent collapse of the crop in Pakistan.

He stated that dismayed farmers were switching to other crops which could reduce area under cotton cultivation by 20 per cent which would further bring production down.

Textile sector would be hard pressed as four billion dollars would be needed to import cotton which would hit the foreign exchange reserves and gross domestic product growth, he added.

Related Keywords: import duties in Pakistan, Pakistan Readymade Garment Manufacturers, Pakistan’s export market, textile and clothing industry in Pakistan, textile exports of Pakistan, value-added textile sector, Vietnam and European Union’s FTA

The Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) Chief Coordinator Ijaz Khokhar said that the country’s export of textile and clothing have been declining sharply during the last six months (July-Dec) of 2015 and the government needs to take preventive measures to enhance textile exports.

Pakistan’s export market has already shrunk due to high energy cost and discriminating import duties on the industry's raw material and a decline in cotton production, said Ijaz Khokhar.

Related Keywords: cost of doing business in Pakistan, cost of electricity in Pakistan, cost of energy in Pakistan, cotton bales in Pakistan, spindles capacity, textile exports of Pakistan, Textile Industry, textile mills in Pakistan

During the last three and a half months, over one million spindles capacity has been closed down in Pakistan mainly because of the unbearable high cost of doing business, said Tariq Saud, chairman of All Pakistan Textile Mills Association (APTMA).

He said that all these spindles were predominantly contributing to the exports of the country.