Steps aimed at revival of Pakistan’s cotton production approved by Dar

ISLAMABAD: An inter-ministerial meeting presided over by Deputy Prime Minister/Foreign Minister Senator Ishaq Dar has approved measures on implementation plan for the revival of cotton including collection of cess through Federal Board of Revenue (FBR), well-informed sources told Business Recorder.

Pakistan’s cotton production has fallen sharply to 6.8 million bales in the 2025-26 season — 34 percent below the target of 10.18 million bales. The estimated cotton production is 6.85 million bales from 2.0 million hectares.

The Cotton Commissioner, Ministry of National Food Security & Research (MNFS&R) gave a detailed presentation on the implementation plan for the revival of cotton, prepared after incorporating the recommendations and proposals of the All Pakistan Textile Mills Association (Aptma).

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The representative of Aptma proposed the establishment of an independent “Cotton Board” on the pattern of the United States. to oversee all cotton-related matters. However, the Federal Minister for National Food Security & Research informed the forum that the merger of the Pakistan Agriculture Research Council (PARC) and the Pakistan Central Cotton Committee (PCCC) is in process, and the proposed revamping of the PCCC would address concerns raised by the cotton industry.

The Chairperson, NSDRA emphasized that seed quality and regulation are critical to the success of the cotton revival initiative. He proposed that NSDRA be given representation in the Apex Body being established to implement the revival plan. The Committee unanimously endorsed this proposal.

When the issue of poor R&D performance of the Pakistan Central Cotton Committee came under discussion, the Secretary, MNFSR, informed the house that the primary reason for this under-performance was the scarcity of funds for research and development, as the cotton Cess rate of Rs. 50 per bale has remained unchanged since 2011. While endorsing APTMA’s proposal for the collection of cotton Cess through the Federal Board of Revenue (FBR), the Secretary MNFSR emphasized the need to enhance the Cess rate in accordance with the Economic Coordination Committee (ECC) decision of 2011.

After detailed deliberations on the implementation plan for revival of cotton, the following decisions were agreed upon by consensus: (i) the Cess collection late shall be charged as per the prevailing Act and the ECC decision of 2011; (ii) the Cess shall be collected through the Federal Board of Revenue.

A Memorandum of Understanding (MoU) will be signed between MNFS&R/PCCC and FBR, detailing the Standard Operating Procedures (SOPs) for Cess collection; (iii) In the Pakistan Cotton Advisory Council (PCAC) or the PCCC Board of Governors. the cotton industry shall have majority representation to ensure its ownership of the cotton revival process; (iv) efforts shall be made to ensure that a major portion of the collected Cess is utilized for Research and Development in the cotton sector; and (v) the PCAC shall include representation from provinces, universities, farmers and the seed sector to ensure an inclusive and participatory approach.

Concluding the meeting, the Chair reaffirmed the Government’s firm commitment to ensuring that the ownership of the cotton revival initiative rests with the industry-led council, under the leadership of Aptma.

Copyright Business Recorder, 2025