BEIJING: Pakistan has achieved a significant milestone in its trade relations with China as its cotton yarn exports to the country exceeded $100 million in the first two months of 2024.
Experts predict further growth in Pakistan’s cotton yarn exports globally this year, driven by favorable crop yields.
Data from the General Administration of Customs of China (GACC) reveals that China imported over $100.98 million worth of cotton yarn from Pakistan in the initial months of 2024, marking a remarkable 98% increase compared to the corresponding period last year. Notably, uncombed single cotton yarn accounted for a substantial portion, surpassing $57.77 million in January-February 2024, positioning Pakistan as the second-largest exporter in this category after Vietnam.
The surge in cotton yarn exports underscores a lucrative opportunity for Pakistan to diversify its export portfolio, as highlighted by Sajid Mahmood, Head of the Transfer of Technology Department at the Central Cotton Research Institute Multan. Mahmood emphasizes the importance of expanding beyond traditional Siro Yarns to offer high-quality variants like cotton, carded, and combed yarns, thereby enhancing competitiveness in the Chinese market.
Despite benefiting from a Free Trade Agreement with China, Pakistan faces formidable competition from India, particularly in non-Siro yarns, despite India facing a 3.5% higher duty. Moreover, Vietnam’s duty-free privileges pose a challenge, although its reliance on imported cotton exposes vulnerabilities.
This achievement underscores Pakistan’s growing stature as a key player in the global cotton yarn market and highlights the potential for further collaboration and trade expansion between Pakistan and China.
