A fall in the cotton harvest is reported. Why would an examiner expect this to hurt Pakistan's export earnings as well as its farmers?
- Cotton is the main cash crop and the raw material of the textile industry.
- Textiles are the largest manufacturing industry and the largest source of export earnings.
- Less cotton means mills must import raw cotton or produce less, so textile exports and foreign exchange earnings suffer.
Answer: Because cotton feeds the textile industry, which is Pakistan's leading export sector.