Pakistan’s textile industry has expressed disappointment after the government rejected a proposal to import cotton from India. The Cabinet decision, which came after a recommendation from a senior committee, raised fears about textile exports. Newly appointed Finance Minister Hammad Azhar announced that Pakistan would import sugar and cotton from India to ease economic difficulties. However, the decision has sparked controversy in the value-added sector, with concerns about the impact on international buyers and trade relations. The Pakistan Knitwear Manufacturers and Exporters Association (PHMA) has urged the government to take bold decisions for the industry. They believe that lifting the ban on import of cotton and yarn from India will support the value-added knitwear sector and stabilize the national economy by increasing exports. Former chairman of the Textile Mills Association of Pakistan, Shahzad Ali Khan, supports restricting yarn imports from India, citing the potential negative impact on Pakistan’s spinning sector due to subsidized energy in India. India is the largest cotton producer in the world and the second largest exporter. The Economic Coordination Committee (ECC) decision has raised hopes of a partial restoration of trade relations between Pakistan and India, which were suspended after India revoked the special status of Jammu and Kashmir in 2019.
