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  • Recommendations for LDC cotton exporters on increasing exports to Pakistan

    Chapter 6 - Market profiles - Pakistan 

     
     

    It is important for African cotton exporters to undertake market orientation tours to the spinning and textile industry in Pakistan to acquire first-hand information on the size of the industry, specific fibre quality requirements, product lines, yarn exports, the domestic price structure, and marketing channels. Market information is the key factor in penetrating the Pakistan market.

    General observations are that the recovery rate of yarn in processing African cotton is low due to presence of foreign matter and contamination. This affects the economic viability of Pakistani spinners and hence influences their buying decisions. African ginners need to improve their ginning.

    LDCs should ensure contamination-free cotton, uniformity in fibre qualities and regularity in supplies for obtaining the confidence of Pakistani customers. Contamination-free cotton is used by export-oriented yarn manufacturers and weavers in Pakistan, who pay a premium price for such cotton.

    Direct contacts need to be established between the African exporter and the consumer in Pakistan. The All Pakistan Textile Mills Association has suggested that a proposal be initiated at the Government level to determine specific fibre requirements by Pakistan spinners in collaboration with the All Pakistan Textile Mills Association and African cotton producers on a joint venture basis.

    Pakistan mills could be invited by LDCs for a survey of ginning factories to initiate proposals between LDCs and Pakistan for joint ventures. Customer ginning and long-term agreements could also be initiated if Pakistan mills are assured regular supplies. An official certificate for African cotton quality specifications would promote trade between Africa and Pakistan with mutual price benefit to both countries.

    Pakistan is emerging as a regional hub for trade and manufacturing. LDCs could benefit by arranging warehousing facilities at low cost especially in export processing zones (free zones) in Pakistan so that mills can have direct access to available ready stocks. This would facilitate spot and regular sales in the Pakistan market as well as other markets of the region and minimize logistic costs and other issues.

    Spinning mills in Pakistan base purchasing decisions on availability of the required qualities and price competitiveness. Improvement in market information, developing strong relationships with buyers and improving contractual conditions are major factors that will promote African cotton sales to Pakistan.

     

    6.5.9-en 

     

    Sources: Textile Commissioner’s Organization, Ministry of Textile Industry, Ministry of Food, Agriculture and Livestock, Federal Bureau of Statistics, Government of Pakistan. 

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    Cotton Exporter's Guide

    Brochure - African cotton promotion
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