Commerce ministry planning a different approach for exports due to the downward trend in cotton

The year 2020 proved to be the worst year not only for the people but for cotton production as well. After the outbreak of Covid-19, there was a downward trend recorded by the media reports that show Pakistan’s cotton production. In 2020, only 3.8 million acres of cotton were cultivated.

In mid-January, Abdul Razzak Dawood, Advisor to Prime Minister Imran Khan on Commerce and Investment warned that the top officials of the commerce ministry are considering cutting off 10 countries by rebuff the country’s exports and instead devise strategies with trade attaché. The yearly fluctuation (-14pc in 2016-17, and -12pc in 2018-19) in acreage complicates the picture as well.

Compared to the actual produce, the target that was set for cotton production was 863 kilograms and hardly 635 Kilograms per acre was cultivated whilst the overall production came up to 5.5 million bales. The cotton area has also reduced by 4pc in 2020 going from 2.9m to 2.5m.

The data showed that Pakistan’s exports to 10 markets declined particularly to the United Arab Emirates (UAE) fell by 22% from $607 million last fiscal year to this year’s $474 million.

The country’s exports to the Kingdom of Saudi Arabia fell by 8.2% from $217.46 in 2019 to $199.73 in the same period.

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