Cotton production in a third-world country like Pakistan plays a crucial role in economic development. Since the nation is largely dependent on the textile sector, cotton imports hold significant value. The country holds the 4th position in the consumption of cotton all around the world.

Pakistan also imports cotton yarn from several other countries. They might soon be considering lifting their ban on cotton yarn imports from India as it has greatly upset their textile industry workers. This might be a good opportunity for those who are cotton yarn wholesalers in Surat and other places.

As per experts, Pakistan's cotton yarn import is expected to rise in the following year. This is because the demands have been rapidly increasing with the extension of GSP (Generalized System Preference) plus status by the EU (European Union), due to the implementation of the second phase of the agreement called CPFTA (China-Pakistan Free Trade Agreement), the government provides relief packages, permission is granted for export of all PPE kits and removal duty tax and charges of about 4 to 5 per cent on regulatory import of cotton and cotton yarn.

Under the new China and Pakistan Free Trade Agreement (CPFTA), China has decided to eliminate tariffs on numerous products- 313 to be specific, out of which 130 belong to the textile and clothing sector. These are the important tariff lines of Pakistan's interests on exports of these products, which is a significant part of the textile industry and clothing sector.

According to the official adviser of Pakistan's prime minister on Commerce and economics matters- Abdul Razak Dawood, the European Union's extension on the GSP plus (Generalised Preference System) till the year 2022 is expected to give a boost to the Pakistani textile exports by several hundred million dollars on an annual basis. Because of the rise in textile exports, the cotton yarn imports will likely rise as well, which could lead to the opening of doors for cotton and other yarn import from India through yarn wholesaler in Surat and several other regions.

In the preceding year of 2020, the total import of cotton yarn of Pakistan witnessed a drop of more than 37 per cent, which is 65 million dollars as compared to those of the previous year with an average drop of 5.45 million per month. The average in the year 2019 was more than 8.65 million. This average statistical report derived was through the market analysis tool called Texpro.

The cotton yarn imports in Pakistan have been observing a rapid and drastic decline in May of 2020. This major and drastic decline was caused due to the ongoing COVID pandemic, which has taken a toll on multiple industries worldwide. It also affected the companies, the yarn wholesalers in Surat and numerous other regions and countries.

As discussed above, due to the pandemic, the value of cotton yarn import of Pakistan went significantly down, almost hitting 2 million in May 2020. It has taken a plunge of around 72.4 per cent over the series of previous months. It remained nearly 2 million per month from May of 2020 to August of the same year. The market observed a considerable recovery in September of 2020. The growth of cotton yarn imports was 134.17 per cent higher over the previous months.

In the current year of 2021, Pakistan's cotton yarn import is predicted to witness an increase of about 20 to 25 per cent, making it a good opening for cotton yarn wholesalers in Surat and other areas in case they lift the ban of imports from India. It is expected that the yarn import would reach over 81 million dollars in 2021.