KARACHI: Cotton trading remained lacklustre on Saturday amid lack of buying interest. The undertone remained steady but outlook uncertain.
A large segment of the value-added textile sector is facing liquidity because of refunds held by the Federal Board of Revenue (FBR). Trading remained dull despite the fact that ginners have around 300,000 bales and the next cotton crop was late due to ongoing spell of heatwave.
Moreover, demand from weaving sector and looms also remained sluggish. The entire textile chain is currently facing liquidity crunch as refunds amounting to billions of rupees are held by the FBR.
The Karachi Cotton Association left its spot rates unchanged. Officially no transactions were reported to have transpired on the ready counter, but some private deals between mills and some exporters did take place, brokers said.