960425

Extended holidays in

cotton, other markets

DR ZAFAR HASSAN

LAHORE: The economic activity in Pakistan will remain practically closed from the 26th of April to the 4th of May 1996, barring a one day interlude next Thursday, due to Eid-ul-Azha, weekend holidays and the May day closure on the first of next month. Then due to international holiday for the weekend (Sunday), on the 5th May thereafter, Pakistan's cotton and other markets will practically be cut off from the mainstream international business for the next couple of weeks or so.

A lone unconfirmed transaction of 300 bales of cotton from Multan was being mooted at Rs 2315 per maund on Thursday. The Karachi Cotton Association, which reviewed the current cotton situation on Thursday, was of the view that the 1995-96 cotton crop would be around 10 million bales (of 170 kgs each), out of which the actual exports during the current year would range between 1.8 to 1.85 million bales, while the domestic spinning mills are expected to consume about 8.5 million bales this year.

Recently, the Federal Commerce Minister Ahmad Mukhtar said he did not see any justification to import raw cotton from India as there is no shortage of cotton in the country. Ahmad Mukhtar stated that the cotton export contracts which are not covered with bank guarantees will not be fulfilled, thus leaving surplus cotton to cater for the remaining demand of the domestic textile industry.

The Federal Commerce Minister is reported to have stated that some shortage of cotton could be felt later on in September, but he felt that the new Pakistan 1996-97 crop may commence arrival in July this year, which would alleviate any big shortage of cotton in the country. Ahmad Mukhtar also reportedly stated that India is subsidising cotton and also increasing the non-tarrif barriers on which the European Union is now protesting. The Federal Minister stated that the spinning sector in Pakistan was given relief so that it is now nearing a stage of self-reliance, but that the weaving sector was still in difficulty in Pakistan.

The cotton exports sales registered with Export Promotion Bureau (EPB) upto 23rd of April, 1996 were 2,322,009 bales (of 170 kgs each), while actual shipments of the 1995-96 crop cotton from Pakistan upto the 22nd of April, 1996 were 1,763,189 bales. On Thursday, the KCA spot rate for Niab-78 was Rs 2210 per maund, that for K-68 variety was Rs 2380 per maund, while the spot rate for MNH-93 was Rs 2430 per maund.