"Save Cotton to save Pakistan's economy and farmers' prosperity- Ch.Waheed Arshad

Multan ,Welcoming the Prime Minister Muhammad Shahbaz Sharif's decision to fix the minimum support price of  cotton  at Rs.8500 per maund, Chairman of Pakistan Cotton Ginners Association (PCGA) Chaudhry Waheed Arshad has said that this step would help in boosting up cotton production and bringing prosperity in rural areas. He said that Pakistan's economy relies mostly on its cotton and textile sectors. The cotton-ginning, processing and textile industries make up almost half of the country's manufacturing base, while cotton is Pakistan's principal industrial cash crop, supplying critical income to rural households. Talking to media here today Ch.Waheed Arshad said that since cotton is the lifeline of Pakistan.Its survival is necessary through  Crop Zoning, Crop Management, Implementation of Cotton Control Act, Cotton Grading, Cotton Certification to compete the world trade. He said that . the future of this vital component of the national economy is uncertain as Pakistan's macroeconomic situation is volatile. PCGA Chairman expressed concern over the rise in interest rates by State Bank of Pakistan (SBP), saying that in the current scenario the rise in interest rates would bring another storm of inflation.He said the increase in mark-up rate would have dire consequences on economic growth rate. It will surely hinder the process of industrialisation and private sector growth. Pakistan should bring its mark-up rate at par with the regional rates which are much lower. Due to high gas, electricity and other tariffs, manufacturers are facing difficulties in meeting external orders and doing business. He said that Government should finalise the cotton procurement mechanism with the consent of PCGA to ensure the protection of interests of cotton growers. Demanding for abolishing the Excise tax, Highway token tax ,President of PCGA said that Government did not fulfil its commitment to abolish the sales-tax on binola and no notification in this regard was issued as yet. Increasing the sales tax rate from 17% to 18% is a big burden on the business class. Provision of certified seed is the responsibility of the government. Crop management should be proactive. A movement should be made to supply certified seeds under the auspices of the government. PCGA will continue its  cooperation with the government at all levels. An authority for cotton grading and certification should be established immediately. The establishment of the Business Dispute Resolution Authority will be a milestone. Cotton is the only cash crop. A mechanism should be made to increase the yield of cotton per acre. A regular movement and campaign should be conducted to ensure the achievement of cotton production targets. PCGA supports and supports all government initiatives to increase cotton production. They will organize seminars, forums and campaign vigorously and will cooperate with the government in all possible ways.