Cotton price reaches historic high amid dollar flight, low local production

KARACHI: Cotton prices have shot up in Pakistan to a historic high in response to rising dollar value and low local production, ARY News reported quoting cotton ginners association head.

The cotton has reached a level of 14,100 per maund after a Rs200 increase in the past few days, which the ginners say is a reaction of delayed imports of cotton bales and dollars flight in recent days.

The locally produced cotton is being consumed with heavy orders while the imported orders are being delayed, said Ihsan ul Haq, chairman of Pakistan Cotton Ginners Forum.

In Punjab, after Rs300 increase per maund, the prices have reached Rs14,300 that is the highest rate of the commodity so far, Ihsan ul Haq said.

However, the chairman also claimed since the weather conditions fared better in the favor of cotton crop, it is likely the country will produce 10 million bales.

US dollar peaks to 11-month high against Pakistani rupee

As reported yesteday, the upward trajectory of the US dollar continued after it touched the 11-month high rate against the Pakistani rupee in the interbank.

According to forex dealers, the greenback saw an increase by Rs1 in the interbank today to close at an 11-month high against the rupee. “The US dollar now stands at Rs166.20 against Pakistani rupee,” the dealers in the forex market said.

Economic experts have previously attributed the spike in the dollar value to strong demand saying imports and debt repayment were pushing the greenback’s price in the interbank market.