Declining cotton output described as direct threat to economic security

KARACHI: President of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Irfan Iqbal Sheikh has termed the ever-decreasing cotton production as a direct threat to the economic security of the country, as cotton is one of the most significant cash crops and, above all, it provides indigenous raw material for the country’s largest exportable product category, namely textiles.

Additionally, textiles exports are all set to cross the $20 billion mark in the outgoing fiscal year. However, cotton production has been reduced to 6-7 million bales per year, he added.

Mr Sheikh said that Pakistan’s textiles products could become much more competitive, provided the entire amount of the raw material required is produced domestically or at least resumption of production of the previous levels of 10-12 million bales per year is ensured.

He added that importing 1 million bales results in the outflow of $1 billion of precious foreign exchange.

The FPCCI chief explained that 60% cost of producing the textile products lay with the raw material of cotton. “Therefore, cotton is our lifeline as far as the lion’s share of our exports is concerned.

“Producing more cotton will also strengthen our foreign exchange reserves, improve abysmal trade balance, and put a stop to the incessant rupee depreciation,” he said.

Mr Sheikh noted with deep concern that the total area under cotton cultivation has declined by 1 million hectares and, if the government and agriculturalists can collectively reclaim that area from other crops like sugarcane, Pakistan could produce an additional 5 million bales per year and save $5 billion.

Khawaja Muhammad Zubair, chairman of the Karachi Cotton Association, maintained that lack of governmental support and non-availability of certified and high-quality cotton seeds were also hampering cotton production in the country.

He added that, given the upward trend in export orders and domestic consumption, the total cotton requirement of the country might climb to 17 million bales, and, Pakistan simply cannot afford to import 10 million bales of cotton.

Copyright Business Recorder, 2022