Pakistan stops the imports of cotton and sugar from India
Recently, the decision to lift the ban on imports of sugar and cotton with India for 19 months was taken by Pakistan, but the decision was withdrawn by the Government of Pakistan the very next day after taking the final decision.
Pakistan imports from India
According to the Pakistan Economic Survey, the production of sugarcane and cotton declined by 0.4% and 6.9% respectively. Because of this, related industries are being affected due to the decrease in cotton and sugarcane production. Pakistan’s two major industries at this time; Textile industry and sugar industry are facing many problems. For this reason, Pakistan needs to import cotton and sugar from India.
- Due to the disruption in cotton supply and domestic production in Pakistan, there has been a huge decline in the textile industry sector in the year 2020 and it has also affected exports.
- It is to be noted that the main items of textile exports of Pakistan include raw cotton, woven fabric, cotton textiles and readymade garments.
- Pakistan is the fifth largest exporter of cotton in the world and it earns more than half of the country’s total foreign exchange by exporting cotton-related products.
- Pakistan’s sugar industry is also facing a crisis. Increase in local consumption and a sharp increase in pricesis the major cause of the crisis in the sugar industry.
- The increase in government subsidy and delay in administrative decisions related to it and the reduction in production in the year 2020 led to high sugar costs, causing a crisis on the sugar industry.
- In such a situation, importing sugar and cotton from India would be more beneficial for Pakistan and its consumer market. At the same time, its exports will increase, and the foreign exchange reserves will also increase.
- With regard to the withdrawal of the ban on imports from Pakistan, Pakistan said that Pakistan would consider starting its trade relations with India only when India reviews its decision on Jammu and Kashmir in August
- However, the textile merchant class of Pakistan, while disagreeing on this decision, has insisted on importing cotton from India.
- India has always been in favor of normalizing relations between the two countries. That’s why India had agreed to start trade with Pakistan without any preconditions But Pakistan, by withdrawing its decision, has proved that it is not in favor of normalizing relations with India.
Source – Indian Express