Cotton yarn exports to China skyrocket by 66%
Published on: May 12, 2024.
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Pakistan’s cotton yarn exports to China saw a significant increase in the first quarter of 2024, according to the General Administration of Customs of the People’s Republic of China (GACC). The exports reached $166.37 million, showing a growth of 65.85% compared to the same period last year.
Imports of “uncombed single cotton yarn containing 85% or above” from Pakistan crossed $99.12 million in the first quarter, compared to $72.70 million in the previous year. Similarly, imports of cotton yarn increased to $65.78 million, up from $26.28 million in the corresponding period of the previous year.
China’s rising demand for Pakistan’s cotton textiles can be attributed to the country’s efforts to balance its industry with both exports and local orders. Previously, Pakistan’s textile products were mainly exported, but they have now gained a good market share in China’s domestic market as well.
Pakistan’s supplies, including cotton, cotton yarns, and Griege fabric, are preferred by many customers due to their competitive prices and quality. However, Pakistan still needs to diversify its textile exports to fully leverage the opportunities in the Chinese market. The textile industry in Pakistan faces challenges from high electricity costs and slow global demand. The Chinese market provides ample opportunities for Pakistani exporters.
To achieve diversification, Pakistan needs to focus on providing finished products to the local Chinese market. Efforts should also be made to maximize the benefits of the Pakistan-China Free Trade Agreement. While most products are covered under the zero-duty structure, some items, such as home textiles, towels, and apparel, face obstacles in entering the Chinese market in sufficient volumes.
Overall, the increase in Pakistan’s cotton yarn exports to China reflects the growing demand for Pakistani textile products. More efforts are needed from Pakistan to tap into the Chinese market’s full potential and overcome the obstacles in diversification.
Source: [The Express Tribune](https://tribune.com.pk), May 12th, 2024.
