Textile sector needs $300 million to stay afloat

An estimated $300 million dollars will have invested by the Pakistani textile industry to run its operations and keep afloat in the international market due to an estimated 3 million bales shortfall in the current cotton crop. While the industry sources have been vocal in pointing a bad situation for the sector in a competitive world, the agriculturist have been unforgiving on what they called ‘sheer neglect’ of the agricultural sector by the economic policy makers.

It may be pointed out here that the total target for the current year crop was 14.14 million bales, with Punjab having the target of 11 million, Sindh 3 million and negligible amount with NWFP and Balochistan. Due to bad crop, the expected yield is in the range of 11.50 million bales with Punjab contributing 9 million while Sindh sharing 2.5 million.

The industry sources on the condition of not being quoted said that the total raw material expenditure on the cotton raw material amounted to US $ 3 billion for the textile sector in a given season. With the 10% resource shortfall as estimated by the industry the additional expenses were in the range of US $ 300 million.

As things stand with the 11 million bales in hand, the industry with a declared need of 16 million bales, the estimated cost of US $ 300 million might well overshoot making it difficult for the industry to remain competitive and for the farmer to have enough incentive to sow cotton again in the next season.