Small and medium-sized textile factories in Pakistan are facing closure due to the massive loss of cotton production due to floods, foreign media reported. Large companies that supply multinationals such as Nike, Adidas, Puma and Target are well stocked and will be less affected.
While large companies have been less affected because of ample inventories, smaller factories exporting sheets and towels to the United States and Europe have begun to close. The Pakistan Textile Exporters Association said a shortage of quality cotton, high fuel costs and insufficient payment recovery by buyers were the reasons behind the closure of small textile mills.
According to the statistics of Pakistan Ginners Association, as of October 1, the market volume of new cotton in Pakistan was 2.93 million bales, a decrease of 23.69% year on year, among which textile mills purchased 2.319 million bales and exported 4,900 bales.
According to the Pakistan Textile Exporters Association, cotton production is likely to fall to 6.5m bales (170kg each) this year, well below the target of 11m bales, leaving the country to spend about $3bn importing cotton from countries such as Brazil, Turkey, the US, East and West Africa and Afghanistan. About 30 per cent of Pakistan’s textile export production capacity has been hampered by cotton and energy shortages. At the same time, the fragile domestic economy has led to weak domestic demand.
Post time: Oct-09-2022