Commodities: Sluggish day on cotton market
KARACHI: Trading activity on the cotton market on Thursday slowed down as buyers took to the sidelines. Shortage of quality cotton continued to restrict trading volume.
The textile industry continues to suffer from a liquidity crunch owing to non-payment of refunds for the last five months, with outstanding amount ballooning to Rs100 billion, brokers said.
“If the government fails to fulfill its commitment of paying refunds within 72 hours, exports cannot grow. The FBR refund payment system FASTER is still not working properly and filing of refund claims is not possible,” said former chairman Aptma Yasin Saddiqi.
Some needy mills managed to get hold of deals of their choice while other textile mills compromised on quality and booked deals from lower quality lint.