Yarn shortage affecting textile sector

However, the government is totally failed to solve the said crisis as neither the talks, between the Minister of Textile Industry with all stakeholders, proved any good nor the Cabinet Committee on Textile found any solution to the problem. The cabinet committee on textile met under the chair of Federal Minister for Finance Shaukat Tarin few days back but did not announce any strategy regarding availability of yarn in the country.
The sources further said that if the government did not come with some strategy in next few weeks Pakistan would deprive of the textile orders of EU and USA that would further affect the growth of the textile sector.
Similarly, the yarn shortage emerged because of the black-marketing and storage of yarn in order to increase the prices. Domestic cotton prices have already surged by 25 per cent since the start of the current fiscal year. Neither the provincial governments nor the federal government took any action against those responsible for the blackmarketing
Federal Minister for Textile Industry Rana Farooq Saeed Khan said once that action would be taken against the hoarding and black marketing but despite passing of two weeks no step is taken.
Analysts and exporters anticipate further rise in the domestic cotton prices because of active buying by the international buyers who have flocked Pakistan amid a shortfall in world cotton production.