Pakistan's small spinning mills face closure amid supply shortages

QINSUN Instrument Network International Alert: Small and medium-sized textile mills in Pakistan are facing closure due to a significant reduction in cotton production caused by flooding, according to a foreign news report. Large companies supplying multinational companies such as Nike, Adidas, Puma and Target Group have sufficient stocks and are less affected.

 

While large companies have been less affected due to ample stocks, small mills exporting sheets and towels to the US and Europe have begun to close. The Pakistan Textile Exporters Association said a shortage of quality cotton, high fuel costs and inadequate payment recovery from buyers were the reasons behind the closure of small textile mills.
 

According to the Pakistan Ginners Association, the volume of new cotton marketed in Pakistan so far is 2.93 million bales, down 23.69% year-on-year, with textile mills purchasing 2.139 million bales and exporting 4,900 bales.

 

According to the Pakistan Textile Exporters Association, Pakistan's cotton production is likely to fall to 6.5 million bales (170kg per bale) this year, well below the target of 11 million bales, so the country will need to spend about US$3 billion to import cotton from countries such as Brazil, Turkey, the US, East Africa, West Africa and Afghanistan. About 30% of Pakistan's textile export production capacity is hampered by cotton and energy shortages. At the same time, the fragile domestic economy has led to weak domestic demand.