Affected by the sharp decline in the rupee exchange rate, Pakistan’s cotton yarn exports grew rapidly. In October this year, Pakistan’s cotton yarn exports surged 82.1% year-on-year to 73,368 tons, maintaining growth for the seventh consecutive month. The average export unit price fell to US$1.9/kg, a year-on-year decrease of 14.6%, and the seventh consecutive month of decline. From January to October this year, Pakistan exported a total of 525,000 tons of cotton yarn, a year-on-year increase of 20%.
The excessive growth of cotton yarn exports has caused dissatisfaction in Pakistan’s domestic home textile industry. They said that large-scale exports of cotton yarn have led to tight supply of domestic cotton yarn, bringing garment production to a near standstill. However, the National Textile Mills Association of Pakistan said that banning cotton yarn exports will not only be detrimental to normal production, but will also make the problem of non-performing loans more serious. Judging from the current situation, the exchange rate of Pakistan’s rupee will continue to fall, and the government has no plans to ban cotton yarn exports. Therefore, the strong momentum of Pakistan’s cotton yarn exports will remain for several months.
