Raza Khan

Pakistan’s textile sector needs to shift itself from cotton-based products to in-demand synthetic fibres and other materials, said a report of the Ministry of Commerce. “Cotton’s production in the country is declining, while importing cotton is an expensive option, so the textile industry needs to diversify its production,” the report said. The ministry has also decided to establish a fund to help the textile sector diversify its production, especially shifting from cotton to other high value-added products. Mudassar Raza Siddiqi, Director General (Textile) at the Ministry of Commerce, told WealthPK that cotton production witnessed a constant decline in the country during the last decade.

“Cotton production dropped to 8.33 million bales during 2021-22 from 12.91 million bales during 2009-10,” Siddiqi pointed out. He informed that the Ministry of Commerce has decided to establish a research and product development fund to improve the knowledge base in the textile industry. “The main purpose of the fund is to enhance value-added exports based on research and development of new products using the linkages between industry and academia,” the official said. He said the fund would also support the industry in shifting from cotton-based textile to synthetic fibres.

“Research and trainings will be carried out under the fund to improve management practices in the industry to help this shift,” he added. The official further informed that tools like information technology and artificial intelligence (AI) would also be used to achieve the purpose beside other support measures. Siddiqi said that Pakistan can enhance its textile exports through product diversification and enhancing the share of high value-added textile products other than cotton.

He said cotton is very important and precious component of textile sector. “However, the industry should have other options of manufacturing as cotton production is declining in the country,” he maintained. He informed that the fund would also be utilised to enhance the capacity of universities’ laboratories to support the industry in improving the knowledge. “The academia should also provide support in meeting international compliance requirements,” Siddiqi said.

The official said that a decline in country’s textile exports was observed during recent months mainly due to shortage of cotton besides other reasons. According to the Ministry of National Food Security and Research, the area of cotton cultivation dropped by 37.52% to 1.94 million hectares during 2021-22 from 3.11 million hectares during 2009-10. Low-quality seed and pesticides, high insect infestation, low profitability of cotton crop, and climate-related issues have been identified as major factors behind the decrease in cotton productivity.

According to All Pakistan Textile Mills Association (APTMA), Pakistan could lose at least $2 to $3 billion of textile exports this year directly on account of low production of cotton. “Importing cotton is expensive and it impacts competitiveness of the value-added textile products,” APTMA said. According to Pakistan Bureau of Statistics (PBS), Pakistan spent $1.828 billion to import 7,76,394 metric tons raw cotton during the fiscal year 2021-22.

Credit: Independent News Pakistan-WealthPk