By admin       2018-02-16

The domestic cotton market continues to depict a lacklustre disposition where mills buying are mostly slow. The international cotton market is also mostly dull and drab. Moreover, the turnover in the market has been quite low in the recent past. It is generally believed that many of the Pakistani mills have already picked up the better quality of cotton locally, or have booked sizeable cottons for import for the current and later months. Therefore, in recent days cotton sales in the domestic market have been on a paltry scale. Indeed the merchants in Karachi have informed that cotton prices are down and depressed globally. In Pakistan, textile industry sources claim that yarn and fabric prices are also down and very dull. Indeed most mills are said to be very concerned about to their business. Thus the daily activity in both the cotton and textile markets has dwindled sizeably. Domestic mills are also continuing to complain about cloth being imported in to the country from India and China without taxes via Dubai which has impacted their business adversely. On Thursday, the seed cotton (Kapas/Phutti) prices in both Sindh and Punjab are said to have ranged from Rs 2400 to Rs 3000 per 40 Kgs. Seed cotton prices are said to have declined by Rs 200 to Rs 300 per 40 Kgs this week in a very dull market. Lint prices in Sindh are said to have ranged from Rs 5600 to Rs 7000 per maund (37.32 Kgs) on Thursday, depending on the quality. In the Punjab, the cotton prices are said to have ranged from Rs 6000 to Rs 7000 per maund, according to the quality. Traders added to say that for the lower grades of cotton the prices have fallen upto Rs 400 per maund. Very low grade of 800 bales of cotton from Hala in Sindh was said to have been sold at Rs 5100 per maund (37.32 Kgs) on Thursday. Earlier, 200 bales of cotton from Rahimyar Khan in Punjab were said to have been sold at Rs 7000 per maund. This year (August 2017/July 2018) Pakistan is likely to harvest a cotton crop of about 11.6 million bales (155 Kgs) on an ex-gin basis. On the global economic and financial front, the current week has shown an almost universal optimism amongst most analysts and observers over a broad spectrum. It is now mostly evident that the European Union and the United States are both showing sound economic growth which is mostly believed to stay sustained for the foreseeable future. However, there remain some doubters who say that government borrowings in the United States have been of record proportions and it would be very difficult for the government to pay back its monumental debt. Be that as it may, presently the economic growth in both America and Europe show a credible measure of stability and optimism. It is generally believed that the broad global economic upturn provided the necessary wherewithal for America and Europe to continue their ongoing economic growth and gains. Reporting from Berlin, Reuters news agency has stated that "Strong exports drove robust growth in Germany at the end of last year while inflation stayed subdued in January (2018), adding to signs that Europe's biggest economy is on track to extend its upswing well into 2018".� Reports also indicate that the industrial production in the Euro zone shot up higher in December, 2017 which is the fastest economic growth in ten years which the economic observers believe will continue throughout during 2018. It is presently believed that the industries in Europe see a strong increase in worker hiring and investments in capital goods. Indeed Japan is also reported to be undergoing its longest period of industrial growth not seen since the 1980's. It is being hoped by the economists the real growth now visible during 2018 will extend throughout this year and beyond. Even at midweek on Wednesday, the Chinese stocks were reported to have rebounded on the eve of the Chinese Lunar New Year holidays which started on Thursday for a week and the markets will reopen later on the 22 of February 2018. Most Asian stocks, including India, were pulled up on Wednesday following Wall Streets re-bounce.� No doubt the boost in prices provided to the sundry shares markets follows the liberal lending policies of the central banks initiated when the decade old recession enveloped the monetary landscape, it is now to be seen if and when the central banks will withdraw their largesse and the global economy will stand on its own feet.

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