Published On: Thu, Jan 14th, 2021
Published in Category: Karachi

Cotton collapse hurting economy more than virus, circular debt.

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KARACHI: Chairman of National Business Group of FPCCI, President Pakistan Businessmen and Intellectuals Forum and All Karachi Industrial Alliance, and former provincial minister Mian Zahid Hussain on Wednesday said cotton sector if ignored will inflict more harm on the economy than coronavirus, state-run corporations and circular debt.

The area under cotton cultivation and its production is declining for a decade and now the cotton output has reached to the lowest mark of 5.5 million bales creating new challenges, he said.

Mian Zahid Hussain said that the continued fall of cotton has inflicted a loss of around 36 billion dollars over the past decade which it has increased import bill, stoked unemployment and taken toll on the rural communities.

Talking to the business community, the veteran business leader said that cotton collapse in resulting in the direct losses of two billion dollars and indirect losses of eight billion dollars per annum.

The country is suffering from losses of 700 million dollars on account of cottonseed oil while the losses in the cottonseed cake is almost USD1.5 billion.

Pakistan used to have almost 84 million tonnes of cottonwood stick and crop reduction is causing deforestation in the country which must be noticed.