Petroleum Minister Ali Pervaiz Malik said on Sunday that Pakistan would begin selling excess liquefied natural gas (LNG) in international markets from January 1.

Malik’s statement during a press conference in Lahore came months after it was reported that Pakistan was exploring ways to sell excess LNG cargoes amid a gas supply glut that could cost domestic producers millions in annual losses.

He noted that Pakistan had been importing gas from “our friend” Qatar and Italian energy company Eni. But, he continued, there was an excess of this imported gas as the use of this fuel for power generation had reduced in the country during the past few months.

Resultantly, “we were compelled to divert it to domestic consumers, due to which circular debt was increasing in the gas sector”, he said, adding that it also caused a loss of around Rs1,000 billion to Pakistan from 2018-19 till now.

“From January 1, we will sell this excess fuel in international markets and reduce our burden while limiting the loss caused by it,” he added.

Moreover, he said, the measure would also allow Pakistan’s state-owned enterprises in the sector to operate on their full capacity and generate profit.

More to follow

Additional input from Reuters

ISLAMABAD: Pakistan’s exports of non-textile products shrank 14.45 per cent to $4.056 billion in the first four months from $4.741bn over the corresponding months of last year, according to data compiled by Pakistan Bureau of Statistics. The country’s raw food exports declined in 4MFY26, primarily due to a significant drop in rice shipments, marking the first downturn after 19 consecutive months of growth.

However, a paltry growth was noted in the export of value-added non-textile products during the period under review. The export of engineering goods saw an increase of 2.84pc in 4MFY26 from a year ago, mainly driven by electric fans, auto-parts and accessories, and rubber tyres.

At the same time, a growth of 20.40pc was recorded in the quantity of cement exports during 4MFY26 from a year ago. The export value of cement rose 28.58pc during the period under review.

Footwear exports increased 1.12pc driven by a surge in other footwear. The export of leather footwear declined (5.59pc), followed by canvas footwear (48.10pc). The exports of leather goods dipped 0.34pc, led by 1.70pc decline in leather gloves. However, leather garments saw a paltry growth of 0.21pc this year from a year ago.

Raw food shipments fall as rice sector witnesses first drop after 19 months

The export of raw leather decreased by 2.45pc during the period under review. Pakistan is one of the main suppliers of global surgical instruments. However, the export value of these instruments remained negligible as famous brands re-marketed these in western countries. It recorded a paltry growth of 2.30pc during 4MFY26.

The export of carpets and rugs declined by 12.12pc in 4MFY26. The export of sports goods also surged by 17.74pc, which was mainly led by an increase of 17.74pc in football exports from the country. The export of gur products (not classified under the food category) decreased 22.51pc in 4MFY26 from a year ago.

The export of jewellery declined by 98.99pc in 4MFY26, followed by a 94.38pc decrease in the export of handicrafts, gems 3.62pc, furniture 11.94pc and molasses declined by 91.97pc during the months under review. Petroleum crude exports recorded a negative growth of 19.43pc in 4MFY26 from a year ago, whereas the foreign shipments of petroleum products increased 115pc.

Published in Dawn, December 7th, 2025

LAHORE: The domestic spinning and cotton textile sector is facing what industry leaders describe as the worst economic crisis in the country’s history, triggered by unprecedented taxes, the region’s highest power tariffs, and a surge in under-invoiced cotton yarn and fabric imports from China and other countries.

According to Cotton Ginners Forum Chairman Ihsanul Haq, over 100 spinning mills and over 400 ginning factories have already become non-operational. The shutdowns have led to a drastic fall in the purchase of raw cotton, shrinking national cotton production to alarming levels and threatening further erosion of foreign exchange reserves due to rising imports of edible oil and textile products.

He warned in a statement that the unchecked influx of imported yarn, much of it under-invoiced, has devastated the domestic spinning industry. “Instead of giving relief to revive cotton production and boost exports, the sector is being crushed under heavy taxes and prohibitive power tariffs,” he said. “This unprecedented crisis has left hundreds of thousands of families jobless.”

He revealed that the All-Pakistan Textile Mills Association (Aptma) had formally alerted the Federal Board of Revenue (FBR) about the monthly arrival of millions of kilogrammes of under-invoiced yarn. However, no action was taken, allowing imports to grow each month and accelerating the collapse of local spinning mills.

Punitive taxes, costly power, and under-invoiced Chinese yarn shut down hundreds of mills

Mr Haq also claimed that some importers are selling yarn in Faisalabad’s yarn market without any invoices, causing losses of “tens of millions of rupees” to the national exchequer while further damaging the domestic cotton value chain. He added that a major Chinese company has already opened an office in Faisalabad, with more firms reportedly planning to do so to expand yarn sales to Pakistani mills.

Pakistan’s cotton output, previously around 15 million bales, has plunged to just 5.5m bales, even as approximately 800,000 unsold bales remain with ginners and traders due to weak demand.

Mr Haq noted that cotton prices have crashed to Rs8,000 per 40 kg, pushing farmers into severe financial distress. With the shift from cotton to sugarcane cultivation, he warned that Pakistan may be forced to spend billions of dollars on edible oil imports next year.

The ginning sector is also buckling under a massive tax burden — with a combined 86pc sales tax on cotton, cottonseed, oil, and oilcake. Meanwhile, textile units face additional financial pressure as they are being asked to clear 10-year-old gas dues.

To highlight the seriousness of the crisis, he noted that in Rahim Yar Khan, formerly the country’s leading cotton-producing district, there were nearly 125 ginning factories and 150 oil mills operating each year. This year, however, only 45 ginning units and 25 oil mills are still in operation. The district has also seen the closure of more than 100 spinning mills and hundreds of power looms.

Mr Haq urged the federal government to immediately impose an import duty of at least 20 per cent on yarn and fabric, reduce power tariffs and taxes across the cotton value chain, and provide relief to spinning, ginning, and textile units to restore competitiveness.

Published in Dawn, December 7th, 2025