KARACHI: The consumption of cotton by textile mills in Pakistan would increase following decision of World Trade Organization (WTO) to allow duty-free exports of 75 Pakistani items to European Union (EU) markets for a two-year period.
Pakistan Cotton Ginners Association PCGA Chairman, Amanullah Qureshi said cotton consumption by textile mills in the country is likely to surge to 13 million bales of 170kg each, compared to current consumption of around 11 million bales per season. The approval of EU package for Pakistan by WTO’s Council for Trade in Goods (CTG) would boost export orders for yarn and fabrics, which would in turn, raise cotton consumption of spinners and textile mills across the country.
This factor, along with current trend of rising international prices, would result in increase in cotton prices in domestic market to Rs 6500-7000 per maund, he added.
Qureshi said cotton growers and ginners would now get fair returns on their produce.
Currently, Pakistan exports goods worth 3.5 billion euro per annum to EU. Of this, 75 items that are in EU list alone account for about 921 million euro each year.