Experts predict a significant boost in Pakistan’s cotton yarn exports to China this year due to a good yield. In the first two months of 2024, Pakistan’s cotton yarn exports to China have surpassed the $100 million mark.
Data from the General Administration of Customs of the People’s Republic of China reveals, Pakistan’s cotton yarn imports increased by 98 per cent to over $100.98 million during the first two months of 2024, compared to the corresponding period last year.
In January and February of 2024, Pakistan’s exports of uncombed single cotton yarn alone surpassed $57.77 million with country emerging as the second-largest exporter in this category after Vietnam for the current year. Exports of uncombed single cotton yarn grew by $41.95 million in the first two months of 2024, compared to $14.54 million during the same period in the previous year.
Sajid Mahmood, Head - Transfer of Technology Department, Central Cotton Research Institute, highlights the Pakistan-China yarn trade as a pivotal opportunity for Pakistan to expand its exports beyond predominantly Siro Yarns.
Mahmood recommends diversifying into other high-quality variants such as cotton, carded, and combed yarns to enhance competitiveness in the Chinese market.
Despite Pakistan's advantage of a free trade agreement with China, the country faces stiff competition from India, particularly in non-Siro yarns, notes Mahmood.
Vietnam too presents a challenge with similar duty-free privileges, indicating the need for Pakistan to navigate through these competitive dynamics effectively, he adds.
