In­dia’s cred­i­bil­ity at stake over cot­ton ex­port deal

The Pak Banker - - 2national - Staff Re­porter

LA­HORE: The Pak­istan Econ­omy Watch ( PEW) on Tues­day said that cred­i­bil­ity of In­dia out­look of Pak­istan's tex­tile in­dus­try is at stake as for­mer has re­fused to hon­our fu­ture sale agree­ments to pro­vide cot­ton.

In­dian ex­porters are of­fer­ing dif­fer­ent lame ex­cuses for back­ing out; they sim­ply want to dis­re­gard long-term com­mer­cial re­la­tion­ship to sell cot­ton on high price to other coun­tries that has dented their rep­u­ta­tion, is said. Ex­ports to Pak­istan have been de­nied while those na­tions that com­pete Pak­istan prod­ucts in in­ter­na­tional mar­ket are be­ing pro­vided cot­ton which amounts to stab­bing our tex­tile in­dus­try in back, said Dr. Murtaza Mughal, Pres­i­dent PEW.

The mala fide in­ten­tions of In­dian ex­porters as well as their govern­ment have now been proved. Their greed will have a dev­as­tat­ing im­pact on our tex­tile in­dus­try com­pris­ing 450 units, hav­ing 85 per cent ex­ports of the to­tal pro­duc­tion and nine per cent share in GDP.

"Our im­porters should re­mem­ber that back­ing out from sale agree­ments is noth­ing new for In­dian ex­porters," he said. Dr. Murtaza Mughal said that In­dia is pro­vid­ing cot­ton to a com­pet­ing nation that has reg­is­tered 37 per cent growth in ready­made gar­ment sec­tor this year while its to­tal ex­ports are pro­jected to touch 27 bil­lion dol­lar mark while Pak­istan to­tal tex­tile ex­ports will hardly touch $12 bil­lion. He said that Tex­tile Min­istry and other concerned bod­ies are yet to do some­thing ex­cept lip ser­vice. Cot­ton prices would soon de­cline in the in­ter­na­tional mar­ket paving way for our im­porters to buy it on re­duced prices. Pak­istan govern­ment can also con­sider pay­ing them in the same coin by de­cid­ing not to im­port BT cot­ton­seed from In­dia, he said.

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