Highlights:

  • Pakistan may allow the import of cotton from India via land routes. 
  • As per a source, it is being said that the Adviser to the Prime Minister on Commerce Abdul Razak Dawood may decide on whether to import cotton and yarn next week from India.
  • The trade ties between India and Pakistan can help to minimize the cost of production in Pakistan and sustained food supplies.
  • Imports from India would be cheap and would reach Pak within three to four days. 
  • It is being said that All Pakistan Textile Mills Associations (Aptma) is exerting pressure on the Pakistan Government to not import cotton from India. 
  • On Saturday, Pakistan PM Imran Khan welcomed the ceasefire agreement with India. 

As per media reports on Sunday, Pakistan may allow the import of cotton from India via land route as prospects of the gradual restoration of bilateral trade ties have brightened after the new ceasefire agreement along the Line of Control. 

As per a source, it is being said that the Adviser to the Prime Minister on Commerce Abdul Razak Dawood may decide on whether to import cotton and yarn next week from India. As per the source, in-house deliberations have begun already but the final decision would be taken only after the approval of the Prime Minister. Dawood while responding to a question on whether Pakistan was considering the import of cotton from India said, “I cannot say yes or no at this stage and would be in a better position to respond on Monday.”

The trade ties between India and Pakistan can help to minimize the cost of production in Pakistan and sustained food supplies. On Thursday, both the countries issued a joint statement to strictly follow all agreements on a ceasefire along the LoC and other sectors after the hotline discussions by their Director Generals of Military Operations.

A ceasefire agreement was signed by both Nations in 2003, but it has hardly been followed. After a series of terror attacks by Pak terror groups on India, the relation between the two deteriorated. The ties worsened between the two Nations after India revoked the special status of Jammu and Kashmir in 2019. The move angered Pakistan, which downgraded diplomatic ties and expelled the Indian High Commissioner in Islamabad.

It is reported that against the yearly estimated consumption of a minimum of 12 million bales, the Ministry of National Food Security and Research expects only 7.7 million bales production this year. However, cotton ginners have given the lowest production estimates of only 5.5 million bales for this year. As per the Bureau of Statistics, there is a minimum shortfall of six million bales, and Pak so far roughly imported 688,305 metric tonnes of cotton and yarn, costing USD 1.1 billion.

Still, there is a gap of about 3.5 million bales that needs to be filled via imports. Due to cotton and yarn shortage, users were compelled to import them from the United States, Brazil, and Uzbekistan. Imports from India would be cheap and would reach Pak within three to four days. 

Importing yarn from other Nations was not only expensive but time-consuming as well, taking a month or two. Risk can be posed to timely delivery of export orders, due to the delay in yarn import. It is being said that All Pakistan Textile Mills Associations (Aptma) is exerting pressure on the Pakistan Government to not import cotton from India. An industry insider said that few millers have already hoarded the cotton and were now charging higher rates and import would dampen their short-term earnings. In an appeal to Dawood, Aptma said that the import of yarn from India will directly impact cotton prices in Pakistan

On Thursday, India said it desires normal neighborly relations with Pakistan and is committed to solving bilateral relations in a peaceful manner. On Saturday, Pakistan PM Imran Khan welcomed the ceasefire agreement with India. 

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