KARACHI: Pakistan’s cotton industry has recorded a 1.5 percent increase in final production this season, with total output reaching 5.607 million bales. A notable development of this season is that Sindh province has surpassed Punjab in cotton production, claiming the top position among cotton-producing provinces for the first time.
Cotton prices remained stable in the market, though overall trade volume stayed limited. Analysts note that market activity has been sluggish, with both buyers and sellers adopting a cautious approach amid prevailing economic uncertainties.
The industrial sector is facing mounting challenges as an alarming increase of Rs. 55 per litre in petrol and diesel prices, a rise in electricity tariffs, and gas supply disruptions have collectively put industrial production at serious risk. The energy crisis has particularly hit the textile sector hard, with the production capacity of several mills adversely affected.
On the agricultural front, early sowing of cotton has begun in the fertile zones of Sindh and Punjab. Farmers are engaged in preparations for the upcoming season, though the current economic climate has left many of them anxious about the road ahead.
Regional tensions continue to cast a shadow over the textile industry, which is facing serious apprehensions. Disruptions to export orders and obstacles in supply chains have left industrialists in a state of uncertainty about future prospects. Industry representatives have called upon the government to take immediate and meaningful steps to address the crisis.
The All Pakistan Textile Mills Association (APTMA) has demanded that the super tax be adjusted against refunds owed to the industry. According to APTMA, such a measure would provide the industry with much-needed financial relief and help resolve the ongoing liquidity crisis faced by textile manufacturers.
Cotton growers are under severe pressure due to the imposition of General Sales Tax (GST) and are demanding the complete elimination of GST on all cotton produce. Farmers argue that this tax has negatively impacted their income and profit margins, and that they are fighting for survival in an increasingly competitive market environment.
A significant development took place on March 4th in the Sindh High Court regarding the Cotton Exchange Building dispute. The honourable court reserved its judgment after hearing arguments from both parties. This case has attracted considerable interest within cotton industry circles, and all stakeholders are now awaiting the court’s decision.
The local cotton market witnessed overall price stability during the past week, though trading volumes remained relatively low. Cotton stocks continue to decline on a daily basis.
The Pakistan Cotton Ginners Association has released its final production figures up to February 28, revealing that total cotton output this year reached 5,607,433 bales, reflecting a 1.5 percent increase compared to the same period last year. Sindh province recorded a production of 2,950,000 bales, while Punjab contributed 2,750,000 bales, meaning Sindh has once again surpassed Punjab in cotton production. Punjab’s output declined by 2.2 percent, whereas Sindh posted a 4.6 percent increase in production.
The Pakistani textile industry is facing serious concerns amid escalating regional tensions stemming from the Iran-US-Israel conflict. The All Pakistan Textile Mills Association (APTMA) formally expressed these apprehensions on Wednesday. Cotton farmers are also under pressure due to the imposition of GST on cotton, and they are demanding the complete removal of this tax across all cotton production.
The ongoing regional conflict has driven energy prices higher, and gas supplies to several industries are expected to be reduced. These developments are likely to further burden the textile sector, which is already grappling with a severe crisis.
In a separate but significant development, the Evacuee Trust Property Board (ETPB), with the assistance of the Federal Investigation Agency (FIA), has taken possession of the Cotton Exchange Building. The Sindh High Court reserved its judgment on March 4 after hearing arguments from both parties. During the proceedings, Justice Adnan questioned why the FIA was involved, noting that an administrative dispute of this nature was not within its jurisdiction. The court also observed that the building falls under evacuee property and that provincial law exists in Sindh to govern such matters. The counsel representing the Karachi Metropolitan Corporation argued that since Sindh’s own law is applicable, it was improper for a federal body to have issued a notice in the matter.
Cotton prices across Sindh and Punjab are currently trading between 15,500 and 16,500 rupees per maund, depending on quality and payment conditions.
Due to the ongoing dispute over the Cotton Exchange Building, the critically important Daily Cotton Spot Rate has not been published for the past three months.
Karachi Cotton Brokers Forum Chairman Naseem reported that international cotton prices remained broadly stable, with New York cotton futures trading between 64 and 68 US cents per pound.
According to the USDA weekly export and sales report, a total of 150,400 bales were sold for the marketing year 2025-26. Vietnam led all buyers by purchasing 50,800 bales, followed by Pakistan in second place with 27,900 bales, while Mexico ranked third with purchases of 14,400 bales.
For the 2026-27 marketing year, total sales stood at 54,600 bales. Indonesia topped the list with 26,400 bales, Mexico came in second with 20,800 bales, and Vietnam placed third with 6,600 bales.
Total exports reached 282,200 bales during the reported period. Vietnam was the leading importer, receiving 94,600 bales, while Pakistan ranked second with imports of 39,800 bales. Turkey followed in third place, importing 31,500 bales.
Sindh overtakes Punjab in cotton arrivals as overall output inches up to 5.61 million bales
PCGA data to Feb 28 shows Punjab arrivals down 2.2 percent, Sindh up 4.6 percent; textile mills take 5.19 million bales, ending stocks fall to 0.24 million
Pakistan’s cotton arrivals for the 2025-26 season edged up 1.6% year-on-year to 5.61 million bales, but Pakistan Cotton Ginners Association data shows the crop’s centre of gravity shifted to Sindh as Punjab posted a decline.
Consolidated arrivals reported by PCGA up to February 28 put last season’s output at 5.52 million bales. The latest tally shows a small national gain, driven by higher arrivals in Sindh that offset lower arrivals in Punjab.
Punjab’s arrivals at ginning factories were recorded at 2.69 million bales, down from 2.75 million bales a year earlier, a decline of about 2.2 percent. The data showed contractions across 11 of 21 districts, with Lodhran and Muzaffargarh recording the steepest drops of 75 percent and 52 percent, respectively.
Sindh, by contrast, reported arrivals of 2.95 million bales, up from 2.82 million bales in the previous season, translating into a 4.6 percent increase. Balochistan contributed around 0.19 million bales, according to the PCGA figures.
Based on the final season shares, Sindh accounted for about 52.6 percent of the national crop, while Punjab’s share was 48 percent and Balochistan’s contribution stood at around 3.4 percent.
PCGA data also showed the textile sector lifted 5.19 million bales during the season, while exporters and traders picked up about 0.18 million bales. Ending stocks at ginning factories were recorded at 0.24 million bales, down from 0.37 million bales at the same point last year, with 71 ginning factories still operating nationwide.
Arrivals during February 2026 were reported at 0.06 million bales, compared with 0.01 million bales in February 2025, pointing to higher late-season inflows as the crop year closed.
The Punjab govt is pushing farmers to grow more cotton. Can they hit their 7 lakh acre target?
Pakistan’s once rich cotton belt has dwindled over the years with water guzzling crops like sugar and rice taking up more and more land.
In cotton land, spring has come early. In Punjab, early sowing of cotton has started as part of a government-led campaign to encourage the expansion of acreage under cultivation. The Punjab government has set a target of bringing at least 700,000 acres of land under early-sown cotton in the divisions of Multan, Sahiwal, Faisalabad, Sargodha, and DG Khan. Multan Division alone is marked for 315,000 acres of such cotton.
For all this, it must be mentioned that this government push is not part of an immemorial tradition, but a recent phenomenon. The government launched this drive in 2025, when it announced a 2.5 billion plan to encourage early cotton cultivation, by providing eligible farmers with financial incentives. These mainly took the form of Rs 25,000 per five acres of cotton sown earlier in the season.
The All Pakistan Textile Mills Association (APTMA) has once again formally urged the Federal Board of Revenue (FBR) to allow textile exporters to adjust their super tax liabilities against their pending tax refunds, warning that the industry’s current financial condition makes a lump-sum payment practically impossible.
In a letter dated March 6 addressed to FBR Chairman Rashid Mahmood Langrial, APTMA Chairman Kamran Arshad stated that despite prior correspondence on the matter, field-level tax authorities continue to insist on the full and immediate payment of super tax dues in a single installment. He emphasized that this rigid stance is placing an undue financial burden on textile mills that are already operating under severe economic strain.
APTMA clarified that while the textile industry fully respects and acknowledges the Supreme Court of Pakistan’s ruling regarding the imposition of super tax under Section 4C of the Income Tax Ordinance, the present financial circumstances of textile mills do not allow them to discharge all liabilities at once. The association argued that permitting adjustment of super tax dues against outstanding refunds would be a practical and equitable solution that does not compromise the industry’s legal obligations.
In a related development, industrialists have raised serious concerns over the twin pressures of rising electricity tariffs and gas supply disruptions, warning that these factors are collectively threatening industrial production across the country. Manufacturers have called on the government to urgently address these issues, stating that the continued increase in power prices and the suspension of gas supply are compounding the financial difficulties already faced by the industrial sector.
The association further demanded that the government immediately suspend the carbon levy and Petroleum Development Levy currently imposed on furnace oil on an emergency basis, arguing that these additional charges are rendering industrial operations increasingly unviable at a time when the sector is already struggling to stay afloat.
The All Pakistan Textile Mills Association (APTMA) has urged Commerce Minister Jam Kamal to take immediate measures to safeguard the country’s export sector amid regional energy supply disruptions.
In a letter addressed to the minister, the APTMA chairman drew attention to the ongoing geopolitical crisis in the region and the disruption of shipping through the Strait of Hormuz. The situation, the association warned, is constraining the supply of oil and LNG to Pakistan, posing serious risks to the power sector and industrial energy security.
APTMA stated that Pakistan’s current account deficit is expected to widen due to rising oil and LNG prices, while supply availability remains uncertain. At the same time, higher energy costs will directly undermine the competitiveness of the export sector. “This creates a double impact on the economy,” the association noted. “The dollar value of imports will increase significantly, while exports — already under pressure — will face further risk.” The association cautioned that even if the conflict stabilizes in the coming weeks, disruptions in energy supply chains and elevated prices are likely to persist for several months. This, it said, poses a serious challenge for export-oriented industries that depend on reliable and reasonably priced energy.
APTMA has sought the commerce minister’s intervention to protect industrial exports through the following immediate measures: (i) immediate suspension of the Carbon Levy and the Petroleum Development Levy on Residual Fuel Oil (RFO), making it a financially viable option for captive power generation by export industries. The association noted that, given current disruptions in international supply chains, the export of surplus RFO is unlikely in the near term, ensuring adequate domestic availability; and (ii) increased production from domestic gas fields and its allocation to the power sector. According to APTMA, the power sector currently relies heavily on imported LNG — particularly from Qatar — the supply of which is facing serious disruption amid the present crisis. Enhancing domestic gas utilization would help reduce reliance on expensive and uncertain LNG imports.
“Timely action on these measures can help maintain energy availability for export industries and prevent a further decline in Pakistan’s export earnings during a period of external stress,” the APTMA chairman stated.
The Sindh High Court reserved its judgment on Tuesday in the Karachi Cotton Exchange building dispute case, hearing multiple petitions related to the sealing of the iconic commercial premises.
During the proceedings, the court noted that the Federal Investigation Agency had indicated its willingness to convert the case into an inquiry. However, the petitioner’s counsel challenged this proposition, arguing that the FIA lacked the legal authority to conduct such an inquiry in the first place.
Justice Adnan ul Karim Memon, addressing the petitioner’s lawyer, remarked that if the FIA’s option was not acceptable to him, the existing case would remain intact. The trader’s counsel urged the court to order the unsealing of the Cotton Exchange building until the question of jurisdiction was formally resolved.
Justice Memon further questioned why the FIA had taken such a keen interest in this matter, emphasizing that the FIA is an investigative body rather than a law enforcement agency and that administrative or property disputes do not fall within its mandate.
The counsel representing the Evacuee Trust Property Board clarified that it was the Board that had sealed the Cotton Exchange building and that the FIA had merely provided assistance in the process. The KMC’s lawyer argued that even if the building were classified as evacuee property, the matter remained a provincial concern.
Justice Memon then raised a pointed question, asking how a federal agency could have issued a notice when Sindh’s own provincial law was already in place to govern such matters.
After hearing arguments from all sides, the court reserved its judgment on the various petitions filed in connection with the case.
Copyright Business Recorder, 2026
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