The Economic Policy and Business Development (EPBD) has released an analysis endorsing early cotton sowing as a “transformative strategy that could revitalise Pakistan’s textile sector and significantly boost the country’s economic prospects”.
EPBD analysts termed early cotton sowing as “the single most impactful intervention” available to policymakers.
As per the think tank, adjusting sowing dates to mid-March through mid-April could increase cotton yields by 14-35%, “generating substantial economic returns at virtually no additional cost”.
“This represents one of the most cost-effective agricultural interventions available to Pakistan today.”
According to EPBD’s calculations, nationwide implementation of similar early sowing incentives could generate up to Rs25 billion in rural economic activity while producing an additional 1.41 million cotton bales worth approximately $350 million at current market prices.
The report argued that early sowing creates cascading economic benefits throughout Pakistan’s textile value chain.
“At the farm level, net income and benefit-cost ratios decrease linearly with delays in sowing. Maximum net income of Rs155,725 per hectare was achieved with mid-April sowing in controlled studies.”
In terms of rural employment, according to the report, cotton generates Rs40,175 per hectare in labour income, more than competing crops, providing critical employment in rural areas.
“For the textile industry, early-sown cotton produces superior fiber characteristics, enhancing the quality of Pakistan’s textile exports and strengthening the country’s competitive position in global markets.
“On a national scale, reducing cotton imports, currently at $1.61 billion annually, would significantly improve Pakistan’s balance of trade and foreign exchange reserves, according to the analysis.”
Pakistan’s comparative advantage in cotton production remains remarkably strong, emphasised the EPBD.
“The current crisis stems from policy distortions and climate challenges, not from any fundamental loss of economic efficiency in the sector,” it said.
EPBD’s analysis comes at a time when the country seeks to reduce import dependency and strengthen rural economies in the face of mounting climate challenges.
The think tank said it would present the findings to key stakeholders, including officials from the Ministry of National Food Security & Research and provincial agriculture departments.
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