| Pakistan to export cotton to India after 16 years` gap |
| TQ 01 January 2011 |
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ISLAMABAD(Business Recorder): Pakistan will export 3,000 bales of raw cotton to Indiaafter a 16 years' gap, sources told Business Recorder on Friday. Textileexports during 2006-07, worth $10.8 billion, increased by 5 percent against$10.2 billion in 2005-06 but failed to achieve the $11.5 billion target set forthe year. This export consignment, of 3000 bales, will be of low grade cotton costing Rs35 million, at average rate of 48 to 50 cents per pound. Pakistan last exported cotton to India after 16 years back in 1991-92. India's current season cotton productionis around 27 million bales against consumption of 23.5 million bales, a surplusof 3.5 million bales but it exported 4.5 million bales, which created someshortage. India's exports have surged by 110percent, rising from $7.8 billion in 1999 to $18 billion in 2007. Pakistan may again miss the textile exporttarget of $11.40 billion for 2007-08 owing to increasing energy crisis due towater shortage in reservoirs. During July-December of 2007-08, total textileexports amounted to $5.228 billion as compared to $5.489 billion for thecorresponding period of 2006-07, showing 5 percent decline so far. The textile sector is going through severe crisis as almost 70 percentindustrial units have been closed due to the prevailing energy crisis thatincludes severe power load shedding and low gas pressure. Keeping this in view,the government has decided to follow the standards set by the World TradeOrganisation (WTO) for enhancing exports. |