Cotton crop failure to cost $10 billion - AsiaNet-Pakistan

Cotton crop failure to cost $10 billion

November 16, 2020 | | Share:

Islamabad, November 16, 2020 (PPI-OT): The Pakistan Economy Watch (PEW) on Saturday said the failure of the cotton crop will cost ten billion dollars to the country. The cotton production stands at five million bales against the target of fifteen million bales which will require import of ten million bales, it said. Cotton import is necessary to keep the textile sector running, therefore, all the taxes and duties should be waived, said Dr. Murtaza Mughal, President PEW.

He said that the government should resolve the issues confronting the cotton sector and discourage trend among farmers to switch to sugarcane crop. Dr. Murtaza Mughal said that licences should not be issued for new sugar mills as the production is already more than required and area under cultivation for cotton should be increased. He said that Pakistan used to import LNG at much lower prices during 2017 and 2018 than now despite the fact that now international prices are depressed which were normal a few years ago.

Most expensive gas import contracts have been finalised at rates ranging between 16 to 18 percent of Brent crude while the gas purchased through the long-term supply arrangements by the previous government was around 13 percent. The government should not buy costly LNG as it will hit the industrial sector and exports, he said.

For more information, contact:
Pakistan Economy Watch (PEW)
402, 4th Floor, Gulistan Khan House, Fazal-e-Haq Road,
82-East, Blue Area, Islamabad
Tel: +92-51-2510375
Fax: +92-51-2802449
Cell: +92-321-5157671

The post Cotton crop failure to cost $10 billion appeared first on Business News Pakistan.

Category: English, General Business News