| Pakistan is the fifth largest
producer of cotton in the world, the third largest exporter
of raw cotton, the fourth largest consumer of cotton, and the
largest exporter of cotton yarn. 1.3 million farmers (out of
a total of 5 million) cultivate cotton over 3 million hectares,
covering 15 per cent of the cultivable area in the country.
Cotton and cotton products contribute about 10 per cent to GDP
and 55 per cent to the foreign exchange earnings of the country.
Taken as a whole, between 30 and 40 per cent of the cotton ends
up as domestic consumption of final products. The remaining
is exported as raw cotton, yarn, cloth, and garments.Cotton
production supports Pakistan’s largest industrial sector, comprising
some 400 textile mills, 7 million spindles, 27,000 looms in
the mill sector (including 15,000 shuttleless looms), over 250,000
looms in the non-mill sector, 700 knitwear units, 4,000 garment
units (with 200,000 sewing machines), 650 dyeing and finishing
units (with finishing capacity of 1,150 million square meters
per year), nearly 1,000 ginneries, 300 oil expellers, and 15,000
to 20,000 indigenous, small scale oil expellers (kohlus). It
is by any measure Pakistan’s most important economic sector.
Not surprisingly, government policy has generally been used
to maintain a stable and often relatively low domestic price
of cotton, especially since 1986-87 through the imposition of
export duties, in order to support domestic industry. |
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