In the past week, the price of cotton yarn in Pakistan has increased due to increased domestic and foreign demand and rising production costs. It is unusual for demand to increase at this time.
Pakistan’s 20-count carded yarn rose 2.27% in a single week. The increase in domestic spot transactions supported the rise in prices. In the same period in previous years, it was usually a decline.
Pakistan’s textile and apparel exports increased by 7% year-on-year in November, which also stimulated a 2-3% increase in cotton yarn export prices. In the next few weeks, with the formal implementation of the second phase protocol of the China-Pakistan Free Trade Agreement, Pakistan’s yarn exports will further accelerate.
In addition, the sharp decline in the Pakistani rupee exchange rate and sufficient power supply in textile mills have also enabled exports to seize the international market. Pakistan officially announced that imported cotton will be tax-free to ensure the supply of raw materials for textile mills.
