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In a concerning development for Pakistan, the country’s cotton import bill is projected to reach $1.9 billion in the ongoing fiscal year (FY25), amid a massive decline in local cotton arrivals.

“We believe that the cotton import bill is anticipated to reach $1.9 billion, which is 3.9x higher as compared to last year’s import bill of $448 million,” said Arif Habib Limited (AHL) in a note on Saturday.

The rise in cotton imports is attributed to a significant decline in cotton arrivals.

As of October 15, 2024, the Pakistan Cotton Ginners Association (PCGA) reported a total cotton arrival of 3,101,743 bales, a stark contrast to the 5,996,086 bales recorded on the same date in 2023—reflecting a sharp 48.3% decline in production compared to last year.

In Punjab, 1,185,647 bales have been produced so far this year, compared to 2,543,100 bales by this time last year, representing a 53.4% drop.

Similarly, Sindh’s production has declined from 3,452,986 bales in 2023 to 1,916,096 bales in 2024, marking a 44.5% decrease.

As per AHL, the decrease in cotton arrivals has been attributed to “poor farmer economics and the delayed planting of the cotton crop”.

Last year, Pakistan imported 205,000 tons i.e. 1.2 million bales of cotton amounting to $448 million, said AHL. “For FY25, local production is anticipated to reach 6 million bales and imports are expected at 5.4 million bales,” it said.

Experts believe the decline in cotton production, a major cash crop and a critical raw material of the textile sector, is concerning for the South Asian country whose major exports are made up of textile goods, accounting for over 60% of Pakistan’s total exports.

Moreover, rising imports are also likely to exacerbate the country’s balance of payment crisis, which struggles to manage its foreign exchange reserves and sustain external debt.

Comments

200 characters
KU Oct 19, 2024 11:08pm
Someone is in deep sleep mode on not only food security but also making sure that the one competitive advantage we had, also goes down the drain. Age of the primates it is.
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IMTIAZ CASSUM AGBOATWALA Oct 20, 2024 12:24am
This is concerning . Pakistan must keep on encouraging agriculture and not move away from it .
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Waheed ud din Oct 20, 2024 02:59pm
Reasons given in the article for low cotten yeild do not appear sound. Where are agriculture departments of provincial govts? They should come forward to give their views on the issue,
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Malik asad Oct 20, 2024 03:41pm
Finish off with sugar Mills....
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Imran Malik Oct 21, 2024 09:38am
Shame on all the Textile industry of Pakistan. They have earned profit in billions but they are not ready to invest a penny on the growth of cotton in Pakistan. R& D is the name of the game.
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