Prospects for Pakistani cotton textile products exports to China are bleak

According to Pakistan’s “Business Record” report, as China plans to bring 4.6 million bales of reserve cotton to the market, the export situation of Pakistan’s cotton textile industry has become more severe. China is the world’s largest cotton consumer, with annual consumption of about 34 million bales, of which domestic production is about 30 million bales. For Pakistan, cotton textile products account for 16% of its total exports, and China accounts for 38% of its cotton textile exports, which means that cotton textile exports to China are likely to continue to decline this year. In fiscal year 2015, Pakistan’s exports of cotton textile products to China dropped by 15% year-on-year. What’s more serious is that not only has China’s purchases decreased, but the production cost of domestic cotton textile products in Pakistan is too high, making it difficult to meet the price demands of Chinese buyers. As the RMB depreciates, China will increase exports and Pakistan will import more Chinese products. Therefore, the Federal Taxation Bureau of Pakistan recently imposed a 5% import adjustment tax on imported yarn. Prospects for exports of Pakistani cotton textile products to China are bleak