Within a day after announcing plans to allow import of cotton and cotton yarn from India, the Pakistan Cabinet led by Prime Minister has rejected the proposal, according to reports emanating from Pakistan. The proposal was earlier approved by Economic Coordination Council (ECC), and the same was announced by the newly appointed finance minister Hammad Azhar.
The reversal of the ECC’s decision on importing cotton, cotton yarn and sugar from India was announced by the country foreign minister Shah Mehmood Qureshi in a taped video statement.
Pakistan was one of the leading buyers of Indian cotton until August 10, 2019, when Islamabad banned imports of goods from India after New Delhi revoked the special status of its portion of the Kashmir region that both countries claim.
India is the world’s largest producer of cotton, and it is also the second largest producer of sugar. The proposal, which is now reversed, if implemented, would have been a win-win situation for both the countries, as it would have helped India reduce its surpluses, while putting a break on rising prices in the neighbouring country.
