BEIJING: Pakistan’s cotton yarn has attracted the Chinese market in recent years, says a report published by China Economic Net on Tuesday.
This was mainly because of Pakistan’s good quality yarn that can be used as woven yarn or knitting yarn, especially combed yarn can be used to produce high-quality textiles.
Second, Pakistan’s cotton yarn has price competitive advantage in the international market. Third, China is a textile giant, which needs to import a large quantity of high-quality cotton yarn.
Fourth and most importantly, China and Pakistan have signed the second phase Free Trade Agreement (FTA), which went into effect on December 1, 2019.
After the signing of the second phase FTA, the free trade rate between China and Pakistan has exceed 90%. As far as I know, Pakistan’s cotton yarn exports to China enjoy zero-tariff treatment.
However, this year, due to locust invasion and other serious natural disasters, Pakistan’s cotton production has dropped sharply and its price has risen.
As of September 15, the market volume of Pakistan’s cotton was only 1.4 million bales, with a year-on-year decrease of 820 thousand bales. According to Chinese scholar Prof. Cheng Xizhong to maintain the status of traditional cotton growing country and textile producing country, and to keep cotton planting at an advanced level, there are two points worthy of great attention:
First, the government should introduce good policies to make farmers have the consciousness and enthusiasm of planting cotton, and in particular, the government’s policies should ensure that the farmers can make good money by planting cotton.
Second, the government should increase investment in scientific research, and strengthen scientific research and technological development for cotton planting.
And only in this way, can Pakistan’s exports of textile products and cotton yarn increase significantly, he added. – Agencies
