The latest escalation in international oil prices to highest at $65/barrel has enforced the industry to depend on the bi-products of the crude oil or utilizing it as raw material.
While the country's most important sector, textileswould be heavily affected, as it would have to pay a higher price for the increasing crude oil prices.
Higher crude oil prices would result higher cost of production of the domestic textile industry and polyester staple fibre.
The analysts said if the oil prices increases, the cost of making polyester staple fibre rises, which leaves it uncompetitive against cotton.
The country might have to face dilemma if the cotton output sinks, as the textile sector have to use PSF, as a substitute to the raw cotton.
However, the cotton prices sinks to Rs 1,800/maund that supports the textile industry to sustain its competitiveness.
Analysts explained, as the new cotton output is anticipated to be nearly 13 million bales this year, it will good for the PSF. Those textile units, which had installed their own power generating units, would face loss by the increasing oil prices.
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