Pakistan Cotton Spinning Faces Severe Challenges

As of October 15th, the cotton market in Pakistan dropped by 26.5% to 755 thousand tons over the same period last year, of which Punjab decreased by 34.4% to 348 thousand tons over the same period, and Sindh province decreased 18.2% to 406 thousand tons over the same period last year. On the one hand, due to the untimely rainfall and extreme hot weather in the main cotton producing areas of Pakistan, all kinds of bacteria and viruses attacked the main cotton producing areas this year. The attack of white flies and pink globose worms destroyed the existing crop crops and suffered irreparable losses. Farmers were disappointed that they had harvested the crops ahead of time. On the other hand, cotton production has been affected by the use of unqualified seeds and pesticides. Farmers think they have suffered huge losses and will not sow cotton next year.

Because of the low cotton output in China, large textile mills are meeting their needs by signing foreign import agreements. Because of the increase in production costs, this year's textile mills are facing a financial crisis. However, because the state levying a 10% business tax on cotton, levying a 7% tax on cotton yarn, the federal income Commission has not fulfilled its promise and delayed the payment of business tax refund. The financial crisis of Pakistan's domestic cotton textile industry is likely to intensify in the future.