Pak Textile Industry Upset As Imran Khan Govt Rejects Proposal To Import Cotton From India: Report

Pakistan's textile export sector has been eagerly seeking duty free import of cotton yarn from other countries, including India, as threat of huge loss looms large for the segment. 

Islamabad: A day after Pakistan Cabinet rejected proposal to resume import of cotton and sugar from India, textile industry of the neighbouring country has expressed disappointed over the decision. According to a report published in Pakistan daily Dawn stated that Pakistan Apparel Forum had high hopes from trade resumption between India and Pakistan as it described the import of cotton yarn as realistic and the need of the hour.

Imran Khan-led government rejected Pakistan's Economic Coordination Committee's recommendation to resume trade with New Delhi stating that import of sugar and cotton will be deferred till India restores Article 370 in erstwhile state of Jammu and Kashmir. 

The report in Dawn also highlighted the fact that Pakistan's textile export sector has been eagerly seeking duty free import of cotton yarn from other countries, including India, as threat of huge loss looms large for the segment. 

Pakistan Apparel Forum chairman Jawed Bilwani was of the opinion that rejection of ECC's proposal by country's federal cabinet would heavily impact relations with foreign buyers as cotton yarn was not available in the country.

Bilwani also expressed concern of plunge in Pakistan's textile export if import of cotton yarn from India was not allowed.

The ECC meeting, where it was recommended to resume partial trade with India, was chaired by Pakistan Finance Minsiter Hammad Azhar. However, Pakistan Foreign Minister Shah Mehmood Qureshi, who has recently pitched for peaceful relations with India, said that normalisation of relations with New Delhi is not possible till 5th August 2019 decision of abrogating Article 370 in Jammu & Kashmir is rolled back. 

The decision to resume import of sugar and cotton from India raised hope of a partial revival of bilateral trade between the two nations. India is the world's biggest producer of cotton and the second biggest sugar manufacturer.

The developments come days after Prime Ministers of both countries wrote to each other on the lines of creating an enabling environment for a constructive and result-oriented dialogue to resolve all outstanding issues between India and Pakistan.