Pakistan's federal cabinet on Thursday back-tracked on the Economic Coordination Committee's (ECC) decision to allow the import of sugar, cotton and cotton yarn from India through land and sea routes.
On Wednesday, Pakistan's newly-appointed finance minister Hammad Azhar announced that the government had decided to allow the import of sugar, cotton and yarn from India.
On allowing the import of cotton from India, Azhar had said there was high demand for it because Pakistan's textiles exports had increased but last year's cotton crop was not good. "The price of the commodity in India is lower than what it is in Pakistan. The import of cotton and yarn through the Wagah border will help meet domestic requirements at reasonable rates," Azhar said, adding that import of cotton from India for small industries would take place until June.
According to Geo News, the decision to turn down the proposal was taken in a cabinet meeting chaired by Prime Minister Imran Khan in Islamabad, hours after Minister for Human Rights Shireen Mazari said the cabinet will review the ECC's decisions related to trade with India.
Bilwani claimed that prices of cotton yarn had increased after the federal cabinet's decision. The government must ensure the availability of cotton yarn in the country if it did not want to allow its import from India, he added.
He feared massive textile exports decline if the import of cotton yarn from the neighbouring country was not allowed.
In the current year, the country faced a 40 per cent plunge in cotton production and if it was compared with 15 million bales in 2014-2015, then the drop was 50 per cent this year, he said.
Bilwani said if the government did not want to permit the import of cotton yarn from India then it must impose a ban on the export of cotton and cotton yarn for at least the next six months.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.