KARACHI, May 20: The increasing tension on the borders and fears of war with India kept buyers out of the market on Monday and as a result physical business remained at a low ebb.

Ginners who still hold an unsold stock of about a million bales were, however, worried as it will not be that easy for them to sell it if war starts.

Moreover, they were also worried on an other count too. They have to adjust bank overdrafts and clear the outstanding payments of growers. As a result, they lowered their asking prices to attract spinners but there was no positive response.

Floor brokers fear the market is heading for a longer recessionary period as the current tension on the borders and the political standoff may not end in the immediate future.

Spinners are also not happy on the developing situation on the borders and war threats by India in the backdrop continued intense shelling and human casualties.

Import orders are already on the decline as border tension and fears of war has scared away the foreign buyers and there could be slow down in exports for the near-term.

“Textile industry may face the situation prevailing before the US bombing on Afghanistan and earlier war euphoria created by the world press”, fears a leading spinner.

For the second time during the current season, exporters are facing the identical situation as even the traditional exporters of textiles are not inclined to make fresh commitment until sanity on the borders returns, he says.

Meanwhile, private sector exporters have registered export contracts for the sale of 1,197 bales sold to Bangladesh and Indonesia from May 15 to 18, with the Export Promotion Bureau, raising the total of foreign sales to 0.150 bales, which also included 7,685 bales of old crop.

Physical shipments against the foreign sales totals 0.120m bales including 4,000 bales by the TCP and the rest by the exporters.

Official spot rates were lowered by Rs25 per maund to attract buyers but there was no positive response from spinners.

Ready offtake was nil, but some brokers claim stray lots did change hands in the upcountry trading centres.