Restricting trade with India is costing Pakistan dearly. This decision of the Government of Pakistan is falling in the pockets of the common people.
Pakistan is paying a higher price for importing cotton as it is not buying cheaper cotton from India.
Pak stuck in business from India as well
Pakistan has also suffered a severe shortage of medicines and medical equipment.
Pakistani media fears
A report by Pakistani media The News had last month feared that due to the fall in cotton production, Pakistan may have to import expensive cotton from abroad to meet domestic consumption needs. Referring to the data of Pakistan Cotton Ginners Association (PCGA), the report had predicted a 26.54 percent decline in production.
Cotton production decreased in Pakistan
Cotton production is lower this year in Pakistan, but cotton production in India is higher this year than last year. According to the latest estimates of the Cotton Association of India, cotton production in India this year could be 3.54 million bales as compared to 312 lakh bales of cotton production in the country last year.
Cotton of India cheap
Being a border country, Pakistan incurs lower transportation costs to import from India, making it cheaper for them to import cotton from India. But this year, due to the closure of business, it is unable to buy cotton from India. Indian cotton currently costs around 69 cents per pound, while in the international market, cotton is 74 cents per pound. In this sense, it may be cheaper for Pakistan to import cotton from India.
Pakistan lacks 46.2 lakh bales of cotton
According to Indian businessmen, if Pakistan resumes business from India, then it can buy more cotton from India this year as compared to last year because the production of cotton in Pakistan is less this year.
In the latest report by US agency USDA, cotton production in Pakistan this year is 89.9 lakh bales, which is about eight percent less than last year’s 97.5 lakh bales. According to the USDA, the consumption of cotton in Pakistan this year may 137.2 lakh bales and it may have to import 46.2 lakh bales of cotton to meet its consumption.
Article 370 and Pakistan
Pakistan officially broke trade relations with India after Article 370. However, the Constitution granting special state status to Kashmir. Also, due to which Pakistani businessmen are unable to import cheap cotton from India.
