India’s credibility at stake over cotton export deal
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.