The recent floods in Pakistan, which destroyed approximately 15% of its cotton crop, have put its textile industry in a vulnerable position. Never one to miss an opportunity, Uzbekistan officials swiftly secured a deal whereby struggling Pakistan has agreed to take a delivery of one million bales of cotton.
Uzbekistan’s standard procedure in cotton deals is to demand an 80% advance payment in cash, however interestingly it is reported that Uzbekistan has agreed to waive this demand in order to secure the deal. Perhaps a sign of desperation? Customers in China and Bangladesh are facing difficult questions from international retailers over the origin of their cotton and conditions in which it was harvested, so is this a case of Uzbekistan looking to secure new business partners that don’t ask so many questions?
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