Cotton arrival at Pakistan ginning factories declines by 37% post-flood devastation

In this photograph taken on February 24, 2016, Pakistani workers process freshly picked cotton at a factory at Khanewal in the central province of Punjab, Pakistan. (AFP/File)
Short Url
Updated 03 January 2023
Follow

Cotton arrival at Pakistan ginning factories declines by 37% post-flood devastation

  • Sindh reports biggest drop of 47% after unprecedented floods caused huge damages to crops
  • Ginners say low output, slow imports, currency shortage likely to push exports below $1 billion

KARACHI: Pakistan’s cotton arrival at ginning factories has declined by 37 percent on a year-on-year basis, the Pakistan Cotton Ginner’s Association (PCGA) said on Tuesday, following last summer’s catastrophic floods that washed away major crops on large swathes in the South Asian country. 

Torrential rains that began in mid-June triggered floods and wreaked havoc across much of Pakistan. Raging floodwaters inundated a third of Pakistan, devastated cotton, rice and other crops, and caused more than $30 billion in economic losses. 

Cotton ginners in Pakistan received 4.6 million bales by January 01 as compared to 7.3 million bales they received during the same period last year, according to the PCGA data. The arrival of cotton from Sindh, where the crop was largely destroyed, declined by 47 percent to 1.9 bales, while the number of cotton bales coming from Punjab declined by 28 percent to 2.8 million. 

Cotton is the main raw material of Pakistan’s largest exporting sector, textile, which contributes around 60 percent to the overall exports of the country. Pakistani textile millers expected the country to have less than 5 million cotton bales after the floods, but termed the arrival of the produce “encouraging.” 

“The arrival of cotton is encouraging as the sector was expecting around 4.5 million,” Asif Inam, chairman of the All Pakistan Textile Mills Associations (APTMA), told Arab News. 

“The country will have to import less cotton in the wake of local output.” 

Pakistan’s textile sector requires 14 million bales to meet its annual demand for domestic and export purposes. The sector is expecting to import around 6.5 million bales after the drastic cut in cotton output. 

Inam, however, warned that textile exports would decline below $1 billion for a number of reasons, including slow imports due to foreign currency shortage and working capital constraints. 

“The country’s textile exports will decline below $1 billion from January 2023 because of the liquidity crunch as millers’ around Rs400 to Rs500 billion refunds are stuck up due to which people are facing liquidity issues,” the APTMA chief said. 

Cotton analysts said the country would have to import around 6.5 million bales out of which the millers have already signed import contracts for more than 5 million bales. 

“The millers have so far made contracts for the import of 5.2 million bales, while contracts for more imports are in the pipeline,” Naseem Usman Osawala, a senior cotton broker and analyst, told Arab News.  

“Due to slow processing of letters of credit (LCs), imports have decelerated which has led to an increase of prices in the local market to around Rs1,000 per bale.” 

The South Asian nation has imported $1.6 billion worth of cotton from July to November, which is only 3 percent higher than the same period of the last fiscal year. 

Pakistan’s cotton production has also been shrinking and has witnessed a massive decline over the last few years. 

“The cotton output in Pakistan is declining mainly due to the climate change-related issues and reduction in cultivation area,” PCGA Chairman Chaudhry Waheed Arshad told Arab News. 

“Currently only 471 ginning factories are operational out of 900 registered facilities. The operational factories are also under utilization and operate at 30 percent capacity.” 

Cotton farmers in the southern Sindh province, which had 80 percent of its areas hit by floods, are less optimistic about any further output after the cotton-producing belt was hit hard. 

“Major flood-hit districts where cotton-growing belt lies, including Noshero Feroz, Sanghar, Khairpur, Tando Allahyar and Mirpurkhas, were declared calamity-hit areas,” Nabi Bux Sathio, senior vice president at the Sindh Chamber of Agriculture, told Arab News. 

“Cotton production has suffered huge losses while hopes for next sowing season are also dim as floodwater still stands in around 30 percent of the rural areas.” 


Pakistan’s Usman Khan ruled out of second ODI against New Zealand

Updated 30 March 2025
Follow

Pakistan’s Usman Khan ruled out of second ODI against New Zealand

  • The 29-year-old opening batter sustained a hamstring injury while fielding in the first match against New Zealand on Friday
  • New Zealand eased to a 73-run win over Pakistan after Mark Chapman struck a sublime century, Nathan Smith claimed four wickets

ISLAMABAD: Pakistan have ruled out opener Usman Khan from the second one-day international (ODI) against New Zealand owing to a hamstring injury, the Pakistan Cricket Board (PCB) said on Sunday.
The 29-year-old opening batter sustained the injury while fielding during his side’s first ODI against New Zealand at the Mclean Park in Napier on Friday.
“The MRI scan confirmed a Low-Grade tear, making Usman unavailable for second ODI scheduled on 2 April at Seddon Park in Hamilton,” the PCB said.
New Zealand eased to a 73-run win over Pakistan in the first ODI after Mark Chapman struck a sublime century and Nathan Smith claimed four wickets.
The recalled Babar Azam top-scored for Pakistan with 78 off 83 balls but it was his dismissal that started the rot.
Both teams feature numerous changes to those who played out a five-match T20 series, won 4-1 by New Zealand.


Pakistan’s decision to expel refugees has ‘shaken’ Afghan community, UNHCR official says

Updated 30 March 2025
Follow

Pakistan’s decision to expel refugees has ‘shaken’ Afghan community, UNHCR official says

  • Islamabad has set a deadline of Mar. 31 for registered Afghan refugees to leave Pakistan
  • The UNHCR official calls on world to share responsibility, says ‘stability comes at a cost’

KARACHI: A top official of the United Nations High Commissioner for Refugees (UNHCR) in Pakistan on Sunday said Islamabad’s decision to expel refugees has “shaken” the Afghan community in the country, urging the international community to keep step up and share the responsibility.
Pakistan this month announced that that Afghan Citizen Card (ACC) holders must leave the country by March 31, which coincides with Eid Al-Fitr. According to UN data, Pakistan hosts more than 2.8 million Afghans, many of whom fled decades of war and instability in their home country. Around 1.3 million of them are formally registered as refugees and hold Proof of Registration (PoR) cards, which grant them legal protections.
Another 800,000 Afghans possess ACCs, a separate identity document issued by the Pakistani government that recognizes them as Afghan nationals without offering refugee status, according to the UNHCR. With the government now requiring ACC holders to leave by March 31, these 800,000 Afghans face the prospect of being forcibly returned to a country many have never even seen.
“For nearly five decades, millions of Afghans have come and gone from Pakistan, fleeing waves of violence since 1979 and returning home under mixed circumstances over the years. Some have chosen to repatriate voluntarily, while others have felt compelled to do so,” UNHCR representative in Pakistan Philippa Candler said on Sunday.
“Recent Government announcements about departure deadlines have again shaken the Afghan community in Pakistan.”
The move is part of a larger repatriation drive for foreign citizens that began in 2023, following a string of suicide attacks that Islamabad said involved a number of Afghan nationals. Over 800,000 Afghans have since been expelled from Pakistan.
In 2023, the Pakistani government said it was first focusing on expelling foreigners with no legal documentation and other categories like ACC holders would be included later.
Candler said it was “heartbreaking” to see how fearful these ACC-holders are of their forced return, adding that “their hopes and dreams have been shattered.”
She said Pakistan’s continued support for Afghan refugees, who have become woven into the fabric of Pakistan’s society, is “admirable” but undeniably a challenge for the host state.
“Healthcare, education, and other public services are often overburdened, and host communities are feeling the strain. Pakistan is stuck in a tough spot – balancing the needs of its own people, dealing with a growing security challenge, and shouldering the financial impact of hosting refugees,” she said.
“At the same time, the world expects Pakistan to keep delivering. The international community needs to keep stepping up and acknowledge that this stability comes at a cost, and that the responsibility must be shared.”
The situation requires a multifaceted approach, according to the UNHCR official. Pakistan and Afghanistan must work together to make sure that Afghan refugees can voluntarily and safely return home.
She called for a “sustainable return” of Afghan refugees, saying that many of those forced to return in 2023 were back in Pakistan again.
“Sustainable return means creating a peaceful and secure environment in Afghanistan, so refugees don’t have to fear persecution or discrimination when they go back. For Afghans who cannot return safely for the moment, efforts must be made in Pakistan to expand access to education, health care, and employment opportunities, while also granting them legal recognition and protection under international refugee law,” Candler said.
“The international community has a significant role to play. The responsibility on Pakistan should not be borne alone. Humanitarian aid needs to continue, not just to provide short-term relief but to support long-term development programs. Promises were made for the relocation of Afghans who entered the country since 2021. While many Afghans have left to third countries, thousands still remain in limbo in Pakistan. UNHCR is calling for their speedy departures, which means a durable solution and stability for the refugees.”


Middle class families head to Karachi’s Kagzi Bazar for ‘affordable’ shopping on eve of Eid

Updated 30 March 2025
Follow

Middle class families head to Karachi’s Kagzi Bazar for ‘affordable’ shopping on eve of Eid

  • 50-year-old market is located in densely populated area of old city of Karachi 
  • Buyers and sellers both say prices are more affordable than at other markets

KARACHI: Amid Ramadan price hikes and low wage growth across households on the eve of Eid Al-Fitr, there is one safe haven for middle- and working-class shoppers in the Pakistani megacity of Karachi: Kagzi Bazar.

The at least 50-year-old market in the heart of old Karachi, one of the most densely populated areas in the city of over 20 million people, offers a wide range of goods including clothes, jewelry, footwear, bangles, hand bags and other accessories at affordable prices, buyers and sellers told Arab News ahead of the Eid Al-Fitr holiday.

The Pakistan government has announced Eid holidays from Monday, Mar. 31 to Wednesday, Apr. 2.

“It’s comfortable for us in terms of affordability. This market is within our budget, we can’t go to other markets,” Zainab Shafiq, a housewife and mother of two who has been shopping at Kagzi Bazar since she was a child, told Arab News.

“My entire family, including my in-laws as well as my own family, shop here,” she added as she browsed through glittery sandals and bangles at a roadside stall.

Pakistan was beset by inflation above 20 percent since May 2022, registering a high of 38 percent in May 2023, as it navigated reforms under an International Monetary Fund bailout program. While the annual inflation rate slowed to 1.5 percent this February, the lowest in nearly a decade, and the prices of goods are now rising more slowly, the cost of living has not become more affordable in the absence of wage growth for most households.

That is why many middle class and low-income families turn to Kagzi Bazar for Eid shopping over other markets like Tariq Road and Gulf Market in Karachi. 

“The prices here are quite reasonable compared to other markets, that’s why we shop here,” 9th grader Mehek Fatima, who was visiting the market with her mother, said.

“Malls have the same variety but the prices here are reasonable compared to them.”

Mohammad Haroon Abdullah, who has been running a garment shop in Kagzi Bazar for the last 25 years, said people visited the market from different parts of Karachi and even from outside the Sindh province because of cheaper rates. 

“The entire Balochistan, interior Sindh [provinces] come to shop here,” he said. “The entire Lyari [neighborhood], customers from Keamari, Saddar, New Karachi and so many other localities come to us. Even people who have shifted from this locality come from Soldier Bazar and Garden.”

Indeed, the low prices have been bringing loyal customers to Kagzi Bazar for decades. 

“He is more like my brother,” Shenila Abdul Ghaffar told Arab News, pointing toward the owner of a cosmetics shop.

“For almost 28 years, I have been coming to this shop and buying everything from here. My children, daughter-in-law, everyone shops here,” she added.

“At a time when inflation rate is high, it’s easier for us to adjust with our budget here.”


Shawwal crescent sighted, Pakistan to mark Eid Al-Fitr today

Updated 30 March 2025
Follow

Shawwal crescent sighted, Pakistan to mark Eid Al-Fitr today

  • Eid Al-Fitr begins on the first day of the month of Shawwal in the Islamic lunar calendar
  • It is one of two major Muslim festivals that marks end of holy fasting month of Ramadan

ISLAMABAD: The crescent for the month of Shawwal was sighted in Pakistan on Sunday and consequently, Eid Al-Fitr will be celebrated on Monday, March 31, the Central Ruet-e-Hilal Committee announced.
The three-day Eid Al-Fitr festival starts on the first day of the month of Shawwal in the Islamic lunar calendar. The festival marks the end of the holy fasting month of Ramadan.
The Central Ruet-e-Hilal Committee, the country’s apex moon-sighting body, met in Islamabad under the chairmanship of Maulana Abdul Khabir Azad for the sighting of the Shawwal crescent.
“[We] received testimonies of the sighting of the Shawwal moon from various areas of Pakistan today, which include Lahore, Bahawalpur, Islamabad, Sheikhupura, Kasur and other areas,” Maulana Azad announced at a press conference.
“Hence, it was decided with consensus that the first of Shawwal will be on March 31, Monday.”
Pakistan’s government this week announced a three-day holiday from Mar. 31 till Apr. 2 on account of the Muslim festival of Eid Al-Fitr.
The Shawwal moon was sighted in Saudi Arabia on Saturday, marking the end of the month of Ramadan. Eid Al-Fitr is being celebrated in the Kingdom, United Arab Emirates and other Middle Eastern countries today.


Azerbaijan economy minister to visit Pakistan next week to finalize key investment deals

Updated 30 March 2025
Follow

Azerbaijan economy minister to visit Pakistan next week to finalize key investment deals

  • Cash-strapped Pakistan is currently navigating a tricky path to recovery under a $7 billion International Monetary Fund bailout program
  • The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations

ISLAMABAD: Azerbaijan Minister of the Economy Mikayil Jabbarov will visit Pakistan next week to finalize key investment agreements between the two countries, the Pakistan prime minister’s office said on Sunday.
The statement came after Pakistan PM Shehbaz Sharif’s telephonic conversation with Azerbaijan President Ilham Aliyev on the occasion of Eid Al-Fitr, in which he conveyed his greetings and warm wishes to the brotherly people of Azerbaijan.
The two leaders reaffirmed their resolve to further strengthen the deep-rooted fraternal ties between the two countries and build upon the Sharif’s visit to Baku last month, according to the Pakistan premier’s office.
“The two leaders agreed that the Minister of Economy of Azerbaijan would visit Islamabad in the first week of April to hold discussions with the Deputy Prime Minister/Foreign Minister and also pay a courtesy call on the Prime Minister,” Sharif’s office said.
“This visit would ensure finalization of the key investment agreements between both sides thus setting the stage for President Ilham Aliyev’s expected visit to Islamabad in the month of April.”
During his visit to Baku in Feb., Sharif had announced the two nations would sign deals in April to boost bilateral investments to $2 billion. Multiple agreements for cooperation in the trade, energy, tourism, education and other sectors were also signed during the visit.
The developments come as cash-strapped Pakistan navigates a tricky path to economic recovery under a $7 billion International Monetary Fund (IMF) program. The South Asian country has been making efforts to generate revenue through increased trade and investment deals with friendly nations and regional and international allies, focusing on export-led growth.
In September last year, Azerbaijan bought JF-17 Block III fighter jets from Pakistan, reportedly in a $1.6bn deal.
During President Aliyev’s visit to Pakistan last year, a joint committee was set up to materialize projects in trade, commerce, information technology, tourism, telecommunication, mineral resources and other sectors. Sharif said at the time the current trade volume of $100 million did not reflect the “true” trade potential between the two countries.