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Pakistan's textile industry is back at full capacity

Textile production surged as global buyers began ordering from Pakistan as the coVID-19 was contained.

Pakistani textile mills have reportedly recently expanded production to full capacity before the outbreak, as significant improvements in the country's containment of the epidemic have led buyers around the world to shift some of their orders to domestic manufacturers. However, recent heavy rains and pests have brought cotton yields to new lows, leading to a surge in imports of cotton and artificial yarns, leading to a much-needed increase in textile production.

Overall, Pakistan's textile industry is doing very well compared to its regional rivals, with some international buyers shifting orders from China, India and Bangladesh. As exporting countries and regions, including the United States and Europe, recover from the outbreak, the number of export orders is likely to increase, while the textile industry is recovering rapidly with government support.

To meet domestic production demand, Pakistan must import 5 million bales (225 kg per bales), equivalent to an estimated 8 million bales (150 kg per bales) produced locally this year, at an estimated import cost of about $1.8 billion. Pakistan's cotton imports rose nearly 1,000 per cent in dollar terms to $67.43m in August, compared with $6.3m in the same month last year, according to Statistics Pakistan (PBS). In the first two months of 2021 (July-August), Pakistan's cotton imports grew by 255 per cent.

Recent heavy rains have damaged between 200,000 and 300,000 bales of new cotton in Sindh, while pests have damaged between 300,000 and 400,000 bales of new cotton in Punjab, according to the Pakistan Cotton Ginners Association. Pakistan's cotton output is falling after hitting a record 15m bales in 2015/16.

(Source: China Cotton)


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