ISLAMABAD: The International Cotton Association (ICA) has declared 84 textile mills in Pakistan as defaulters over the mills’ failure to meet the procuring agreements.
In this regard, the statistics issued by the Pakistan Cotton Ginners Association (PCGA) revealed that Pakistan produced 5.2 million cotton bales by the end of November 2024, which was 33 percent less than the bales production during the corresponding period of the last year.
Cotton Ginners Forum chairman Ahsanul Haq told a local publication that after the ICA’s decision, the defaulter mills will not be able to import cotton from any part of the world.
Despite the expectation of cotton and bale rates increasing due to low production, it went down as the textile mills preferred to import cotton and thread from the international market after an 18 percent sales tax was imposed on textile mills.
Ginners and growers raised concerns regarding the decline in the cotton and bales prices and advised the government to withdraw an 18 percent sales tax on the purchase of cotton and thread to support the local cotton industry.
