There are chances that India can start exporting cotton to Pakistan.
Pakistan has recommended the lifting of the ban on the import of cotton from India to bridge the raw material shortfall the country’s textile sector is facing.
After the Pulwama attack (14 February 2019), Pakistan lost its MFN status with India thereby impeding the import of duty-free cotton.
Pakistan withdrew all import duties on cotton on 2 January this year; earlier it had imposed a 11 per cent import duty.
Pakistan’s Textile Ministry, headed by Prime Minister Imran Khan, has sought permission from the Economic Coordination Committee (ECC) of the Cabinet to lift the ban on import of cotton and cotton yarn from India, reports Pakistani media.
Prime Minister Khan, as in-charge of the Commerce and Textile Ministry, had already approved the summary to be placed before the ECC, a report said.
Currently, cotton and yarn imports are allowed from all countries except India.Pakistan suspended trade ties with India after New Delhi revoked the special status of Jammu and Kashmir in 2019.
Cotton Association of India (CAI), one of the leading Indian trade bodies,is also advocating the starting of cotton export to Pakistan.
Commerce Adviser Razak Dawood tweeted, “A meeting was held with the Prime Minister @ImranKhanPTI escalating prices of cotton yarn were discussed. He was sympathetic towards the value-added sectors & advised that in order to ease the pressure on yarn and keep momentum of value added exports.”
Pakistan Textile Exporters Association Chairman Khurram Mukhtar said that import of raw cotton, yarn and grey fabric from India would bridge the gap in demand and supply.
