Pakistan becomes world's largest buyer of American cotton this year

Pakistan has witnessed an unprecedented increase in cotton imports from the United States, with deals for a staggering 72,000 bales signed in just one week.

This development has catapulted Pakistan to become the world's largest buyer of American cotton this year, with over three million bales already imported.

The rush in imports is attributed to the domestic shortage of quality cotton, coupled with lower local production. "The limited availability of high-quality cotton domestically has compelled textile mills to rely heavily on imports," said Ahsan Ul Haque, Chairman Pakistan Cotton Ginner's Association.

Consequently, cotton prices have also skyrocketed, rising by PKR 200 to reach PKR 18,200 per bale. The significant increase in imports is expected to bridge the supply gap and stabilize prices in the local market.

Pakistan, which recently secured a $7 billion loan program from the International Monetary Fund (IMF), has imported $6.3 billion worth of cotton over the past five years. This figure raises questions about the country's agricultural self-sufficiency.

The country's substantial cotton imports from the United States are draining its precious foreign exchange reserves. Unless domestic cotton production and availability are significantly improved, the country faces a looming threat of escalating import bills and a dwindling dollar supply.