[vc_row][vc_column][vc_column_text dp_text_size=”size-4″]To import 3.5 million US cotton bales, the All Pakistan Textile Mills Association (APTMA) has asked for a $2 billion soft loan. APTMA requested in writing that Donald Bloome of the US Embassy take up the matter of the US government sanctioning loan.
The APTMA noted in their letter that “Pakistan domestic cotton production has plummeted to the historical low plummeting 5 million bales for the current year with predicted cotton production losses of more than $2 billion.”
Since Pakistan’s textile industry consumed nearly 15 million cotton bales in the previous year and the anticipated demand for the current season indicates that about 10 million bales will need to be imported, domestic cotton production is significantly short of what is needed to meet industry demands.
Pakistan bought 5 million cotton bales worth $1.48 billion last year, with 1.7 million of those bales coming from the US, it continued. Contracts for the import of 1.2 million bales of cotton from the United States would be the primary source of import for the current year as of today.
The State Bank of Pakistan (SBP), which is also featured in the world market and trade report as the majority of outstanding sales are from Pakistan, has difficulty clearing shipments due to the country’s economic circumstances, the APTMA observed.
Unfortunately, the country has severely restricted cotton imports. Banks don’t start Letters of Credit (LCs) or stop importing cotton through CAD. According to the statement, “The industry is running out of cotton stocks and as a result, our mills have either closed down or will close in the very near future if decisive and prompt action is not done.”
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