Kristin K Hawkins, the United States Consul General in Lahore, engaged in fruitful discussions with key representatives of the All Pakistan Textile Mills Association (APTMA) to explore and strengthen bilateral economic relations between Pakistan and the United States. The meeting, held at the APTMA headquarters, focused on fostering collaboration in various sectors, with a particular emphasis on the textile and cotton industries.
The meeting saw the participation of notable figures from both sides. Mr. Kamran Arshad, Chairman Northern Zone, Mr. Ahmad Shafi, Vice Chairman, Former Chairmen Mr. Adil Bashir, Mr. Hamid Zaman, and Secretary General Mr. Raza Baqir, alongside senior members of APTMA, warmly welcomed Ms. Hawkins, underlining the importance of such dialogues in building robust economic partnerships.
Agenda
The discussions revolved around exploring avenues to expand trade and investment relations, with a primary focus on the cotton and textile sectors. Both parties acknowledged the enormous potential for collaboration and expressed a mutual desire to capitalize on the strengths of each country.
Textile Industry Overview
Mr. Kamran Arshad, Chairman APTMA North, delivered a comprehensive presentation on Pakistan’s textile industry. He highlighted the challenges faced by the industry, notably the decline in domestic cotton production. Arshad stressed the reliance on the United States as a major supplier of cotton and outlined plans to import over three million bales to meet domestic demands.
Economic Impact
Emphasizing the significance of the textile sector to Pakistan’s economy, Arshad pointed out that textiles constitute 62% of total exports. He underscored the critical need for continuous textile industry operations, as any shutdown could result in millions losing their jobs, posing a catastrophic threat to the country’s survival.
Trade Volume and Potential
Mr. Kamran Arshad shared that the United States is Pakistan’s largest trade partner, with a total bilateral trade of US$ 9.85 billion in 2021-22. Pakistan exported $6.8 billion worth of goods to the U.S., while importing $3.0 billion in return.
Proposed Mechanisms
Arshad proposed a mechanism for importing U.S. cotton under GSM-102, with export proceeds from textile products used as collateral through an escrow account. This innovative approach aims to facilitate smoother trade transactions between the two nations.
Technology Transfer and Collaboration
The APTMA Chairman highlighted the importance of technology transfer, seeking collaboration with U.S. counterparts for high-yielding cotton seed and advanced cotton research. He stressed the need for joint ventures, the entry of international seed companies, and the introduction of genetically modified and certified seeds to boost productivity.
Future Prospects
The discussion concluded with a call for strengthened U.S.-Pakistan collaboration in promoting U.S. cotton linkages with Pakistan’s textile industry, advocating toll manufacturing in Pakistan by U.S. textile companies, and fostering joint ventures for mutual economic benefit.
This meeting sets the stage for enhanced cooperation, paving the way for a more robust economic partnership between Pakistan and the United States, particularly in the vital textile and cotton sectors.
